A real estate company has filed a lawsuit against the developer for breach of contract.
Wednesday, December 7, 2011
The delicate situation faced by Newland International Properties Corp., developer of the Trump Ocean Club International Hotel & Tower complex, has been further complicated by a lawsuit filed by a customer, which adds to three other lawsuits filed by other five clients.
The Newland company is now being accused by Korbel Properties Inc., who insist that they must return their money because the property was not delivered on time.
The other cases presented in the Eighth Court of Commerce relate to this latest suit, as they have to do with irregularities in purchase and sale transactions of the luxury project.
In these cases, the applicants state that there were differences in the amounts paid and that Newland sold properties that were already promised to other people, without returning the money given as a depoit.
An article in Prensa.com adds, "Newland International Properties Corp. is now in default and trying to come to terms with its bondholders, who they have not been able to pay the $31 million for the first repayment of capital on an standing issue of $220 million.
The company was due to payment on 15th November, but at the time did not have sufficient funds to meet the commitment. It could only pay the interest, which came to about $11 million. The developer has said that "several factors" have led to reductions or delays in sales and the collection of outstanding balances on the apartments sold. "
Developer Newland International Properties announced that on May 18 it will have updates on topics of interest to bondholders.
Newland International Properties Corp., developer of Trump Ocean Club, should have made the second payment of capital on the issuance of $220 million in bonds on 15 May but did not do so.
Investors are threatening a lawsuit against Newland Properties, the owner company, for an alleged breach of bond principal payments in November.
The owners of Hotel Trump Ocean could face legal action from Gary Lundgren, owner of 15% of the bonds that were used as financing for the construction of the building, for an alleged breach by failing to pay the agreed capital in November 2011.
Holders of bonds issued by Newland International Properties Corp. are willing to become partners in the project because the developer does not have the necessary capital for the next repayment.
On November 15, Newland International Properties Corp., developer of Trump Ocean Club International Hotel & Tower, is due to pay $31 million in amortization of capital to holders of bonds issued to finance the Trump Ocean Club.
The developer of the Trump Ocean Club is building a beach club on Isla Viveros in the archipelago of Las Perlas.
Work on the project developed by Newland International Properties, has already started and completion is expected during the third quarter of 2011.
Prensa.com state in their article, "Roger Khafif, president of Newland, said the club will be used by guests and residents of Trump Tower and to facilitate transportation, a floating dock next to the hotel is being built."
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