News & Events

In an opinion issued on February 20, 2013, the United States Court of Appeals for the Eleventh Circuit affirmed the dismissal of claims brought by two groups of Term Lenders and their assignees against the Firm’s clients, Barclays Bank PLC, Deutsche Bank Trust Company Americas, JPMorgan Chase Bank, N.A., and The Royal Bank of Scotland plc.  The complaints alleged that the Firm’s clients and other Revolving Lenders under a Credit Agreement pertaining to the failed Fontainebleau casino project in Las Vegas had breached the Credit Agreement by declining to fund a March 2009 borrowing request by Fontainebleau.  The Eleventh Circuit held that the Term Lenders lack standing to enforce the Revolving Lenders’ promise to loan money to Fontainebleau. 

This is the successful conclusion of a series of litigation that arose after the Revolving Lenders refused to lend $656 million that Fontainebleau alleged was necessary to complete its $3 billion casino project.  In June 2009, Fontainebleau simultaneously filed for Chapter 11 bankruptcy in the Southern District of Florida, started an adversary proceeding against the Revolving Lenders and filed an expedited motion for summary judgment seeking billions of dollars in damages and a turnover order forcing the Revolving Lenders to immediately fund Fontainebleau’s $656 million borrowing request.  The Revolving Lenders were simultaneously sued by certain Term Lenders who had already loaned more than $1 billion to Fontainebleau, nearly all of which was lost when the Fontainebleau project collapsed. 

Simpson Thacher took the lead in the briefing in both the District Court and the Eleventh Circuit, obtaining dismissal of all claims, and David Woll successfully argued the appeal on behalf of all the Revolving Lenders.  The STB litigation team includes Tom Rice, David Woll, Peri Zelig and Stephanie Kostiuk and the bankruptcy team includes Sandy Qusba and Terry Sanders.