JPMorgan Sues Homebuilders, Developer Over Nevada Project
The defendants include units of
KB Home
(KBH),
Toll Brothers Inc
(TOL),
Meritage Homes Corp
(MTH),
Weyerhaeuser Co.
(WY) and
Beazer Homes USA Inc
(BZH). An affiliate of developer Focus Property Group Meritageand
John Ritter
, Focus Property Group's chief executive, also are defendants...Wachovia Corp.
(WB) filed a similar lawsuit in U.S. District Court in Manhattan in October against a group of builders and the developer of the other project, Kyle Canyon Gateway.
Wachovia's
banking unit was the administrative agent for the lenders on the Kyle Canyon project.
JPMorgan Sues Homebuilders, Developer Over Nevada Project
NEW YORK
-(Dow Jones)-
JPMorgan Chase & Co.
(JPM) sued a private land developer and several of the nation's largest homebuilders Friday over loans taken out in connection with a massive planned community near
Las Vegas
.
The lawsuits, filed in U.S. District Court in Manhattan, are related to the Inspirada, a 2,000-acre housing project that was expected to have as many as 11, 500 homes in Henderson, Nev. The development's total cost was expected to exceed
$1 billion
.
JPMorgan's banking unit acted as administrative agent for a group of lenders and had arranged about
$535 million
in financing to a consortium of home builders for the project.
The lawsuit alleges the consortium is in default under the terms of the credit agreement, including failing to complete construction of certain improvements to the project.
"Work on the project has substantially stalled, if not ceased completely," one of the lawsuits said.
The defendants include units of
KB Home
(KBH),
Toll Brothers Inc
(TOL),
Meritage Homes Corp
(MTH),
Weyerhaeuser Co.
(WY) and
Beazer Homes USA Inc
(BZH). An affiliate of developer Focus Property Group Meritageand
John Ritter
, Focus Property Group's chief executive, also are defendants.
A
Toll Brothers
spokesman declined comment Friday, saying he hadn't seen the lawsuit. Representatives for the developer and the other builders couldn't immediately be reached late Friday.
Inspirada is one of two massive housing developments near
Las Vegas
that received default notices earlier this year.
Wachovia Corp.
(WB) filed a similar lawsuit in U.S. District Court in Manhattan in October against a group of builders and the developer of the other project, Kyle Canyon Gateway.
Wachovia's
banking unit was the administrative agent for the lenders on the Kyle Canyon project.
-By
Chad Bray
, Dow Jones Newswires; 212-227-2017;
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