Report: Related sues lenders
August 12, 2010
NEW YORK – The developer of Base Village in Snowmass is suing lenders Hypo Real Estate Corp., Dekabank Deutsche Gironzantrale, Danske Bank Group and KBC Bank NV in New York State Supreme Court, alleging that the banks did not live up to their financing commitments, The Wall Street Journal reported Wednesday.
The suit, filed by Related of New York, seeks $406 million in damages.
“Despite committing to fund [more than] $520 million in connection with plaintiff’s project in Snowmass, Colo., the lenders engaged in a transparent effort to evade their contractual obligations to fund … due to the credit crisis experienced in the market in general and by these defendants in particular,” the lawsuit alleges, according to the WSJ report.
The suit also seeks an injunction to stop the foreclosure pushed by the lenders, and comes after the Base Village property went into receivership in July as part of a court action spurred by the lenders. The lenders claim that Related owes $386 million on a loan, as well as $48.5 million in other loan-related expenses.