According to Blomberg.com, Clarion Partners, a $35.8 billion real-estate fund, is seeking $200 million from the Mexican government, saying “serious irregularities” in the country’s courts have made it impossible to collect on bad loans.
The New York-based fund declared on Monday August 10th that it filed an arbitration claim to recover the money under the North American Free Trade Agreement. The dispute would be heard if a resolution can’t be reached in 90 days.
According to the filing, an affiliate of Clarion lent $32.8 million in 2007 to a Guadalajara-based businessman to develop properties in western Mexico, with the land acting as collateral. When the borrower missed payments in February 2012, Clarion sought to seize the collateral.
Instead, Clarion says, its efforts to collect were stymied by delays and irregularities in Mexico’s court system. Several months into the process, the firm learned that a judge in the state of Jalisco had canceled its claims on the collateral.
That ruling was based on a forged document, and efforts to get Mexico’s judicial system to investigate the matter proved futile, according to the filing.
The real-estate fund says it now intends to seek a ruling under NAFTA, which guarantees investors in the U.S. a fair hearing in Mexican courts. The amount sought has ballooned to more than $200 million because of $168.6 million in unpaid interest on the original loans, according to the filing.
“We are forced to initiate this proceeding as a last resort,” Onay Payne, director in charge of Mexico investments at Clarion, said in a statement. “Our repeated attempts to seek due process through civil and criminal actions in the Mexican courts have been futile and plagued with serious irregularities.”
The news isn’t good for the much-heralded Tau Resort Nahui in the Riviera Nayarit. Not good for those who bought into the resort and not good for the developer.
more recommended stories
We have to stop them at the border (Trump on Migrant Caravan)
President Trump answers reporters’ questions outside.
Mexico City Airport threatens to turn into confrontation between government and private sector
According to Bloomberg, the referendum on.
Animal trafficking in Yucatan
The traffic of endangered species in.
City of Mérida analyzes the use of electric carriages
The City of Mérida will conduct.
Mexican Nopal: superfood auxiliary in the control of diabetes and hyperglycemia: IMSS
“Cactus (Nopal) consumption is auxiliary to.
7 advantages of using a VPN
While many of us use the.
Hyundai chooses Mérida to open its first virtual store in the Americas
The Korean auto firm Hyundai opened.
A throng of Central American migrants continues their trek toward the U.S. border across southern Mexico
According to the USA Today, an estimated 5,000.
Yucatán’s Legislative Building lights up in pink for Breast Cancer Awareness Month
In October, the month of the.
Cancun’s Nichupté and Bojórquez lagoons to be cleaned up
“A project to clean up the.