Mexican Bank Sues 9900 Wilshire Developer
Mexico-City based billionaire Carlos Slim’s banking group is suing the CPC Group, property developer of 9900 Wilshire, for not making payments on the $356 million loan tied to the luxury condo project slated for the former Robinsons May site.
The 11-page complaint, filed in New York State Court by Slim’s Grupo Financiero Inbursa, claims the CPC Group, the firm of Christian Candy, breached its contract.
The complaint claims the CPC Group has not paid $20.4 million on the loan, with the amount continuing to rise as accruing interest becomes due and goes unpaid, as first reported by Forbes.
The CPC Group agreed to pay for expenses that became associated with the collateral as well as “any deficiency in payment of the monthly debt service payment” on the loan, according to the complaint. Grupo Financiero Inbursa cites in their complaint numerous newspaper articles in which the Candy brothers stated they were in an “excellent financial position.”
Slim purchased a portion of the project’s first mortgage from Swiss lender Credit Suisse during the last quarter of 2008, as first reported by The Courier in January.
The purchase was made through Grupo Financiero Inbursa, Christian Candy stated.
“It was always Credit Suisse’s intention to syndicate (sell) the loan,” he previously told The Courier about the loan.
According to Candy, Credit Suisse began selling parts of the original $365 million first mortgage in the third quarter of 2007.
In the January interview with The Courier, Candy would not reveal the amount of Slim’s stake in the project, sources confirmed it is $150 million.
He also stated, that with Slim or without Slim, 9900 Wilshire was in limbo while officials reconfigured the development’s financing.
“Our operation is on hold pending a refinancing of the debt,” he said.
The project, a 7.95-acre mixed-use project was supposed to break ground this summer. It is slated to have 235 residential condominiums in two buildings, rising as high as 13 and 15 stories, respectively.
It is also designed to include almost 12,000 square feet of retail space, almost 5,000 feet of restaurant space and a two-level subterranean parking garage holding 803 parking spaces.