Yes get to the point Aivars. In the 80's in Aussie credit was freely available the Japanese where throwing money into Aussie like you can image, we have seen how everyone put money into the States over the last 10 years.
Anyway the National Australia Bank (NAB) owned 50% of all of the Pubs (bars that aussies drink at) in Australia and when credit tightened many people could not afford the repayments (sound familiar?) the NAB ended up owning PUBS. Who benefited? Those that bought the PUBS from the banks. Who Lost? The Initial investors!
As for the Japanese a friend of mine bought a golf course just near the Great Barrier reef that the Japanese built at a cost of $250 million for $9 million. At $9 million the numbers worked.
Fascinating to watch history repeat itself read on.
Fontainebleau may face default declaration Miami Beach
The Wall Street Journal reported that the
may face a default judgment because of unpaid contractor claims. FontainebleauMiami Beach
BY DOUGLAS HANKS
The Fontainebleau Miami Beach is vulnerable to a declaration of default by its lenders, partly because of about $60 million in unpaid contractor claims, the Wall Street Journal reported Friday.
Citing unnamed sources, the paper reported that a 45-day agreement by lenders not to declare default on $670 million in construction debt expired Aug. 31. The
In a statement to the Journal, the
The potential trouble with the Fontainebleau Miami Beach comes as the hotel's primary owner, Jeffrey Soffer, grapples with bankruptcy proceedings for the Fontainebleau Las Vegas.
While both are run by Soffer's Fontainebleau Resorts, the projects are separate corporate entities. The Fontainebleau Miami Beach has not filed for bankruptcy protection and has not played a role in the
The purchase marked a milestone for Jeffrey Soffer, the son of Donald Soffer, who earned legendary status in South Florida's real estate industry in the late 1960s when he developed Aventura out of swampland north of
In recent months, the Fontainebleau Miami Beach has enjoyed a surge of cash as buyers closed on condominium units in the second of two condo-hotel towers at the resort. But the hotel has been hammered by a nationwide pullback in meetings and business conferences, particularly in resort areas like
Though rates for its hotel rooms are down,
Last year, Soffer sold half of the resort and its debt for $375 million to Nakheel Hotels, the investment arm of the
But a source familiar with the deal told The Miami Herald that Nakheel agreed to buy a completed project; overruns and the debt tied to the extra bills were to be the responsibility of the Soffer side of the partnership. Of the $375 million that Nakheel paid, Soffer shifted $200 million to pay for cost overruns at the Vegas Fontainebleau project.
The Journal reported that lenders, led by Bank of America, are withholding a final $26 million on the $670 million construction loan until the Fontainebleau Miami Beach resolves the problems with contractors.