Citigroup Sues Developer Casden Over Gulfstream Jet Loan

Citigroup Inc. (C) sued Alan Casden, a Beverly Hills, California, real-estate developer, for $43.4 million, claiming his company defaulted on the financing of a Gulfstream 550 corporate jet.

A unit of Casden Co. took out a $37.5 million loan in 2005 to finance the aircraft, engines and related equipment, Citigroup said in a complaint filed today in Manhattan federal court. The loan was later increased to $45.9 million and was guaranteed by Casden personally and by Casden Co., according to the New York-based bank.

Citigroup said it declared the loan in default and demanded full payment in a letter Dec. 3.

The developer’s Casden Properties LLC has built more than $10 billion in residential real-estate projects over 45 years, according to its website.

A phone message seeking comment from Casden Co. on the lawsuit wasn’t immediately returned.

The case is Citicorp USA v. Casden, 12-CV-8820, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in New York at rvanvoris@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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