Credit Suisse Group AG sued Desarrolladora Homex SAB, Mexico’s biggest homebuilder by revenue, seeking $26.7 million over a canceled derivatives transaction.
Homex owes the payment after the company last month requested that the 2009 agreement be cancelled and Credit Suisse agreed, the Swiss bank said in a complaint filed today in New York State Supreme Court in Manhattan.
“Homex breached, and continues to breach, its contractual obligations under the master agreement,” Credit Suisse said in the filing.
Homex and peers in the Mexican homebuilding industry have struggled to prevent declines in their cash reserves as the government shifts subsidies to promote more capital-intensive apartment construction in cities, instead of individual homes in commuter towns.
Marena Rubio, a Homex press official, didn’t respond to an e-mail seeking comment on the case. Phone calls to her office went unanswered.
Urbi Desarrollos Urbanos SAB, the biggest Mexican builder by the number of homes, was sued in the same court last month by Credit Suisse and Barclays Plc, Britain’s second-biggest lender, over financial derivatives.
Homex shares traded in Mexico rose 0.84 pesos to 10.73 pesos. Its shares traded in the U.S. rose 29 cents, or about 5.8 percent, to $5.26. Homex bonds due in 2020 fell 2.64 cents to 58.35 cents on the dollar at 4:05 p.m. in New York, according to data compiled by Bloomberg. The yield rose 1.07 percentage points to 21.64 percent.
The case is Credit Suisse AG v. Desarrolladora Homes SA, 651581-2013, New York State Supreme Court (Manhattan).