Anglo Irish Bank is being sued for $1 billion by two New York developers who say the bank breached their agreement over funding for three luxury hotels located in Manhattan, according to the Irish Times.
The developers Simon Elias and Izak Senbahar, as well as a number of their companies, are suing the bank for breach of a series of agreements regarding 14 loans totaling $500 million the bank made to the men and their companies, which are part of their Alexico group, to redevelop three hotels, the Mark, Alex and Flatotel.
More than half of the total amount, $270 million, relates to the Mark Hotel, located on the Upper East Side. Anglo allegedly tried to sell on this debt for $200 million, which the plaintiffs are saying is in breach of their agreement.
The bank sold the debts relating to the other properties in July to RPAP, a group of companies registered in Delaware.
Elias and Senbahar are claiming that this is in breach of their agreements with Anglo, as RPAP is backed by the Procaccianti group, a hotel management firm, Atlas Securities, and Rock Point, all of which are their competitors.
The original agreement, say the plaintiffs, was that Anglo would treat the three hotels as a single business and give them time to to redevelop the Mark Hotel and sell a series of refurbished suites in the property before seeking repayment of the loans.
The RPAP companies are now threatening the owners with foreclosure if they do not repay the debts due on the Alex and Flatotel.
Anglo Irish would not comment, but sources say the bank will defend the lawsuit and believes the developer’s case has no merit.
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Switch to the desktop site to post a comment.jacersagain | Jan 05, 2011, 06:20 PM EST
@LoyalCitizen – Sorry if I misunderstood your varied statements re legal decisions being based on opinions of the Irish Courts, Irish President(s) and Irish Governments, all of whom you have slung the same ridiculous comments at under any topic on the Irish Times or IrishCentral blog sites. Take yr last post: “so called Irish Governments (whaaat? it is either a government or it's not, it can't be 'so-called' since it's been elected by the people) have been stealing from Social Welfare Recipients using opinions.” A question if I may? – If the Irish Government PAYS OUT money (supplied by Irish taxpayers) to Social Welfare Recipients, how can it be stealing its own money? Another question: Thousands of Social Welfare Recipients have been identified as defrauding the Irish Government and its taxpayers over many years – why have you never posted a complaint against these real fraudsters? Don’t bother replying ‘cos I won’t be answering on this matter, which has nothing to do with NYC developers suing Anglo Irish Bank.
LoyalCitizen | Jan 04, 2011, 09:09 AM EST
@jacersagain: It has been explained to you before that successive so called Irish Governments have been stealing from Social Welfare Recipients using opinions. Under no circumstances did i mention special criminal courts. You are again demonstrating that you cannot handle language. You also demonstrate that you use believe far too often and that you do not work anything out. Ignorant people like you have nothing useful to say, so you should keep quiet.
stewedpot | Jan 04, 2011, 07:47 AM EST
As a ulster unionist, I am revelling in the republics misery.Zero chance of a united Ireland !!
jacersagain | Jan 03, 2011, 12:40 PM EST
@antoman Jan 02 – LoyalCitizen is I believe aka ChrisButler who also chirrups away on the Irish Times website blogs constantly with the same or slightly modified comments, like a slipping, repeating old LP record. The big chip on his shoulder is over the passing of a law in Ireland some years ago which allows Irish police officers (Superintendents or higher) to express a mere opinion before a sitting of the Special Criminal Courts that a person charged before the Court was engaged in unlawful activities (specifically at the time it was targeted at IRA activists) despite only circumstantial evidence or even none being available and thereby securing conviction and imprisonment of the person charged. I think it might also be applicable to armed gang-related activity as well these days. LoyalCitizen could tell you – maybe he or a friend of his was imprisoned on the basis of such opinions?
jacersagain | Jan 03, 2011, 12:18 PM EST
NYC Developers must be stoopid - how d'ya sue a bankrupt and soon-to-be defunct bank?
cillowen | Jan 03, 2011, 10:49 AM EST
The fun is only beginning - Irish taxpayer's punishment will only keep mounting. Financial controllers of our planet having a field with sheep. A cosa nostra solution is only solution.
smythohare | Jan 03, 2011, 05:23 AM EST
Hardly surprising that when an organisations loan book in NA grows from 1bn to 10bn in a matter of years they make a f up of the paperwork. Who was the self styled CEO of NA during this time? Why is he not being held responsible?
CitizenWhy | Jan 02, 2011, 12:11 PM EST
Looks like the top executives at AIB were a bunch Bernie Madoff style con men. But they will never go to jail.
LoyalCitizen | Jan 02, 2011, 11:09 AM EST
@antoman: I do mean Southern Irish Courts.
antoman | Jan 02, 2011, 10:14 AM EST
LoyalistCitizen were you south of the border and hard done by an Irish Court?
LoyalCitizen | Jan 02, 2011, 09:54 AM EST
It will be interesting to see if American Courts work, where Irish Courts are corrupt and never work.