MIF File Complaint In NY Against Corporation

August 9, 2017

US-based Mexico Infrastructure Finance LLC recently filed a Complaint in a New York court against the Corporation of Hamilton in connection with the $18 million loan guarantee.

A statement from a communications firm representing MIF said, “Mexico Infrastructure Finance LLC [MIF], a Florida-based LLC, recently filed a Complaint in the Supreme Court of the State of New York against The Corporation of Hamilton, the entity responsible for providing municipal services for the City of Hamilton, Bermuda.

“These actions arise out of the allegedly fraudulent release of over $13.7 million of MIF’s funds to the personal bank account of the principals of the borrower, Par-La-Ville Hotel and Residences, Ltd. [PLV], at the direction of Hamilton, and in direct violation of the parties’ written agreements.

“On July 9, 2014 MIF entered into a financing agreement with PLV whereby MIF agreed to lend PLV up to $18 million [the “MIF Loan”] and permitted, subject to various conditions, PLV to draw down from an escrow account the sum of $15.5 million.

“The purpose of the MIF Loan was to cover PLV’s expenses associated with procuring $325 million in long-term, senior financing to construct a luxury hotel, condominium, and car park project in Hamilton. The MIF Loan was a short-term bridge loan that would mature on December 30, 2014.

“The majority of the loan could not be accessed by PLV unless and until PLV had secured a senior loan of at least $225 million and an equity investment of at least $100 million to finance the project, all of which was subject to the review by and approval of Hamilton.”

The lawsuit seeks damages for alleged Fraud, Breach of Contract, Breach of Fiduciary Duty, and Negligence.

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