Co Sues Deutsche Bank, Developer For $200 Million Over Resort Deal
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- A New York limited liability company filed a $200 million breach-of-contract lawsuit against a Dominican Republic resort developer and Deutsche Bank AG (DB) on Friday after the company was allegedly shut out of a beach-front resort development deal.
The lawsuit, filed in federal court, alleges Cap Cana SA and Deutsche Bank opted to finance and develop the Las Iguanas section of Cap Cana's beach-front resort in the Dominican Republic without New York's Praxi LLC in September 2007 after Praxi had won a bidding process and entered a joint venture with Cap Cana to develop the resort.
"Ignoring its agreement with Praxi, Cap Cana terminated discussions regarding the purchase and sale agreement on the purported basis that it and Praxi had not timely finalized that transaction," the lawsuit said. "It did so notwithstanding Cap Cana SA's recent assurances to Praxi that it was working toward the final purchase agreement and the fact that Cap Cana SA and Deutsche Bank were largely responsible for any delays in finalizing that agreement."
The complaint alleges Praxi had worked with Deutsche Bank in order to secure financing of up to $65 million in order to support its bid and finance the acquisition of Las Iguanas. Praxi claims its bid of $85 million prevailed in June 2007.
Shortly after winning the bid, Praxi, at Cap Cana's "forceful request," entered a joint venture to buy and develop the resort, according to the lawsuit.
Praxi alleges that it spent money and made efforts to purchase the land, finalize its financing arrangement with Deutsche Bank and to obtain architects and others to develop the property, the lawsuit said.
However, Deutsche Bank and Cap Cana allegedly "cast aside the bidding process and ceased working with Praxi" in favor of Deutsche Bank financing Cap Cana's development of the property, according to the complaint.
A Deutsche Bank spokeswoman declined comment on Friday. A Cap Cana spokeswoman didn't immediately have a comment.
-Chad Bray; Dow Jones Newswires; 212-227-2017;
chad.bray@dowjones.com
(END) Dow Jones Newswires
November 02, 2007 12:25 ET (16:25 GMT)
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Co Sues Deutsche Bank, Developer For $200 Million Over Resort Deal
