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).
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