Deutsche Bank AG sued Urbi Desarrollos Urbanos SAB, 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 didn’t 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.
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.
David Aguilar, a spokesman for Urbi, said in a telephone interview that the company hasn’t seen the complaint and declined to comment.
Deutsche Bank also sued the guarantors of the loans and promissory notes seeking $46.8 million in damages. They include Ingenieria y Obras SA and Obras y Desarrollos Urbi SA.
Deutsche Bank 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 it told Urbi the developer owed $37.7 million on the agreement.
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.
The case is Deutsche Bank AG v. Urbi Desarrollos Urbanos SAB, 651676/2013, Supreme Court of the State of New York, New York County (Manhattan).