(Source: Wall Street Journal)
A Mexican real-estate family’s move into the U.S. has led to problems that could ripple throughout their empire.
The Cababie family, of Mexico’s well-known Grupo Gicsa development company, is potentially on the hook for hundreds of millions of dollars as a result of personal guarantees they made on loans used to finance two major U.S. real-estate investments, according to court documents and people familiar with the matter.
Last month, the family’s largest U.S. project, an 850-unit condominium in downtown Miami called Everglades on the Bay, entered Chapter 11 bankruptcy, the same day a foreclosure action was launched. Struggling in one of the worst condo markets in decades, the project defaulted in March on a $256 million construction loan from a group led by Bank of America Corp. that was guaranteed by Gicsa and in part the family, according to foreclosure documents filed in Florida state court.
Read Christina Lewis’ full article “Mexican Family Faces Problems in U.S.” in the Wall Street Journal (September 2, 2009).