Penn Gaming Makes Bid for Fontainebleau - TheStreet

LAS VEGAS(

TheStreet

) --

Penn National Gaming

(PENN) - Get Report

offered $50 million for the Fontainebleau Las Vegas casino-resort.

The development is currently under bankruptcy, and Penn's offer would serve as the opening bid at a bankruptcy auction.

Developers filed for bankruptcy on the project, which was about 70% complete, in June. Fontainebleau was originally projected to cost $3 billion.

Penn said it also offered another $51.5 million to resume construction and would get some back if the federal bankruptcy court in Miami approves a competing bid.

The auction is expected to be held in January.

-- Reported by Jeanine Poggi in New York

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