Penn National Gaming, Inc.

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Casino firm could buy bankrupt Fontainebleau Las Vegas

Jeffrey Soffer's legal team is negotiating to auction off the Fontainebleau Las Vegas with a starting bid that would amount to only pennies on the dollar for the unfinished and bankrupt casino hotel.

Casino owner Penn National Gaming has offered to pay less than $300 million for the Fontainebleau Vegas, a project that has already spent about $2 billion, said Scott Baena, the Miami bankruptcy lawyer representing the Vegas Fontainebleau.

Penn would bid less than $300 million for the property, Baena said in a court hearing Monday. He did not say how much less.

Penn National in Fontainebleau Las Vegas talks, says source

Penn National Gaming Inc is one of at least two companies in talks to buy the bankrupt, unfinished Fontainebleau Las Vegas casino and resort, a source familiar with the matter said on Friday.

The negotiations, like any bankruptcy sale, are complicated by the large number of constituencies with a stake in the process, and by the fact that the resort's retail mall component is not part of the bankruptcy filing, said the source, who was not authorized to speak on the record.

Penn spokesman Joe Jaffoni said the company does not comment on rumors or speculation.

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