Mexico's ICA files criminal criticism against Deutsche Bank workers

Mexico's ICA has filed a criminal criticism against workers of Deutsche Bank during a bid to stop the bank from seizing the collateral for a now-defaulted loan to the embattled construction firm, in line with 3 sources near the matter and a document reviewed by Reuters.

ICA's antecedently unreported move to involve government prosecutors within the case, instead of merely following a civil case, is that the latest sign of the company's fraying relationship with its creditors because it appearance for tactics to structure its outsize debt load.

The company defaulted in December once a crash within the peso created its hefty dollar-denominated debt load dearer.

ICA, celebrated for leading major infrastructure comes from airports to highways to dams, has conjointly suffered longer-term pressures because it won fewer mandates.

Deutsche Bank believed it might claim the collateral, created from shares in airdrome operator Grupo Aeroportuario Centro Norte (OMA), as a result of a cross-default clause was triggered on the loan once ICA did not create a bond interest payment in December.

But during a antecedently unreported counterattack, ICA subsidiary Aeroinvest, that holds ICA´s valuable OMA stake, filed a criminal criticism at United Mexican States City's public prosecutor's workplace on January. seven against 3

Deutsche Bank United Mexican States workers once they tried to assert the shares, the document showed.

Though Deutsche is that the agent, it had been a joint loan with different banks too, the folks aforementioned. it had been not clear what number shares the bank might claim, or however huge the loan was.

In Mexico, personal people will use formal complaints to do to induce prosecutors to pursue criminal cases. The sources, UN agency declined to be named because the criticism wasn't public, aforementioned they didn't expect the case to travel to court.

As a results of the criticism, for alleged "attempted breach of trust," ICA managed to induce {an official|a politician|an workplacer|a political candidate} from the prosecutor's office to prevent Deutsche claiming the collateral.

But on Jan. 18, public prosecutors upset that ruling, the document showed. it had been not like a shot clear whether or not Deutsche Bank might currently sell the shares.

"We ar presently in proceedings in United Mexican States in reference to social control of our rights to liquidate collateral on a loan facility following a default," a Deutsche Bank press official aforementioned during a statement.

"We ar assured that our personnel have acted suitably in imposing our legal rights."

A voice for ICA declined to comment. A spokesperson in United Mexican States City's public prosecutor's workplace aforementioned it couldn't provide out data.

Banco Santander's United Mexican States unit this month sold-out over thirty million shares in OMA that were a part of Associate in Nursing equity swap with ICA that it exercised early once the development firm´s December default.