Xanadu lender defaults; work halted

Work inside the Xanadu project came to a halt Friday, and it looks like financial reasons are to blame. A statement from Meadowlands Xanadu says the projected August 2009 opening may now be in jeopardy.

News 12 Staff

Mar 21, 2009, 3:03 AM

Updated 5,603 days ago

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Work inside the Xanadu project came to a halt Friday, and it looks like financial reasons are to blame.
A statement from Meadowlands Xanadu says the projected August 2009 opening may now be in jeopardy.
"We are contemplating a new opening date beyond August 2009 and we have asked our contractors to refocus their work in line with that goal," the statement reads.
The statement says the decision was made due to the default of a lender, a non-bankrupt affiliate of Lehman Brothers called Xanadu Mezz Holdings LLC. According to the statement, that lender has "refused to fund its share of our constructions loans."
Management says the default threatens jobs, and revenue for the area.
Meadowlands Xanadu says it has opened talks with other lenders.


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