Deutsche Bank Sues Urbi in NY for $61 Million Over Loans

Deutsche Bank AG (DBK) sued Urbi (URBI*) Desarrollos Urbanos SAB de CV, a Mexican real-estate developer, in New York for $61.1 million for defaulting on loans.

Deutsche Bank made loans valued at $50 million and $55 million to Mexicali-based Urbi, according to a complaint filed yesterday in New York State Supreme Court in Manhattan. In April, Urbi failed to make a $3 million payment on the $55 million loan and also failed to pay $1.55 million in interest on the two loans, Deutsche Bank said.

The bank also said that because of the default it terminated a swap agreement with Urbi involving interest-rate and foreign-exchange option transactions. Frankfurt-based Deutsche Bank said in the complaint that it told Urbi it owed $37.7 million on that agreement and claimed the payment hasn’t been made.

Foreclosures in Mexico more than doubled last year to a record 43,853. Urbi’s cash and cash equivalents fell 95 percent in the first quarter from the previous quarter. The company has hired Rothschild to advise it on a possible restructuring.

Urbi, the biggest Mexican builder by the number of homes, was sued in New York last month by Credit Suisse Group AG and Barclays Plc, Britain’s second-biggest lender, over financial derivatives.

Deutsche Bank also sued the guarantors of the loans and seeks damages of $46.8 million from them.

The case is Deutsche Bank v. Urbi Desarrollos Urbanos, 651676/2013, Supreme Court of the State of New York, New York County (Manhattan).

To contact the reporter on this story: Don Jeffrey in New York State Supreme Court in Manhattan at

To contact the editor responsible for this story: Michael Hytha at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.