Dubai World, Turnberry Might Keep Fontainebleau Miami

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Lenders holding the $620 million construction loan on Miami Beach’s fabled Fontainebleau hotel are close to approving a restructuring proposal in which the hotel’s owners would contribute $100 million of new equity, according to people familiar with the matter.

Owners Dubai World and South Florida developer Turnberry Ltd. would pony up the additional equity and pay higher fees in exchange for the lenders forgiving previous defaults and extending the loan’s term by four years to 2016, these people said. The lenders, led by Bank of America, took an informal poll during a conference call on Tuesday that showed the proposal has enough support to pass.

Turnberry, led by Jeffrey Soffer, son of founder Donald Soffer, bought the 1,504-room hotel in 2005 and embarked on a sweeping, $500 million renovation. The company has been at odds with the hotel’s lenders for much of the past year. Dubai World joined the project in 2008 when it paid $375 million for half of the hotel’s equity.