Hhhmmmm. Sounds like Lehman had "Full Recourse" in the terms of the loan.
Lehman
Sues Soffer, Fontainebleau for $315 Million (Update1)
February 11, 2010, 05:18 PM EST More From Businessweek
By Linda Sandler and Beth Jinks
Feb. 11 (Bloomberg) -- Lehman Brothers Holdings Inc., the investment bank liquidating in bankruptcy, sued Fontainebleau Resorts LLC and its principal, Jeffrey Soffer, seeking return of $315 million loaned to the developer.
Soffer and his Fontainebleau Resorts committed to three guarantees under a Lehman-led financing agreement to build the retail portion of the bankrupt Fontainebleau Las Vegas casino resort, according to a court filing today in Manhattan.
The retail component filed for bankruptcy in November, defaulting on the loan agreement and triggering the guarantees, Lehman said. Fontainebleau Resorts is not in bankruptcy, while unit Fontainebleau Las Vegas LLC and affiliates Fontainebleau Las Vegas Holdings LLC and Fontainebleau Las Vegas Capital Corp. sought court protection from creditors June 9.
The casino resort, about 70 percent complete at a cost of $2 billion, sits on about 27 acres at the north end of the Las Vegas Strip. Billionaire investor Carl Icahn won court approval last month to buy the unfinished Fontainebleau Las Vegas resort for $156.1 million, including legal costs.