Siemens First Capital Commercial Finance LLC was sued in New York state court for breach of contract over the cancellation of an initial public offering for a security-alarm service business.
The suit, filed yesterday in New York state Supreme Court in Manhattan, accuses Siemens First Capital of “intentionally destroying” three related companies that were planning an initial public offering.
Siemens told Whitecap (US) Fund I LP, the majority owner of Alarm Funding LLC, the parent of the three companies, in March 2011 that the companies had defaulted on an $85 million loan because the public offering hadn’t been completed by March 1, according to the lawsuit.
The companies had never missed a payment on the loan and had repaid $47 million, the complaint shows. Whitecap and two related entities filed the suit, which seeks damages of more than $20 million, on behalf of the companies.
“Siemens was not content with what it was entitled to under the contract, i.e. repayment in full over time,” according to the lawsuit. “Instead, Siemens wished to extract as much money as possible from the alarm funding companies as quickly as it could.”
Siemens First Capital Commercial Finance is a joint venture between the U.S. financial services unit of Munich-based engineering company Siemens AG and Boca Raton, Florida-based financial firm First Capital, according to its website. A voice-mail message left with an outside spokeswoman for the company wasn’t immediately returned.
The case is Whitecap (US) Fund I LP v. Siemens First Capital Commercial Finance LLC, 650888/2012, New York state Supreme Court (Manhattan).