Luxury property developers, Christian and Nick Candy, have hit the news once again, and are being sued by Grupo Financiero Inbursa, a Mexican banking conglomerate owned by Carlos Slim. The lawsuit was filed in New York State court in Manhattan yesterday. The 11 page complaint alleges that CPC group, Christian Candy’s property development firm, has failed to pay monies owed on a Beverly Hills luxury condo project, 9900 Wiltshire,” that went south after the Kaupthing bank failure. The Candy brothers barely avoided disaster back in October last year, with some “creative accounting.”
According to Mr. Slim, the Candy brothers have so far reneged on $20.4 million in payments, which is growing daily as interest accrues. Mr. Slim is not a happy bunny and is apparently incensed after reading an article in The Sunday Times (a glossy weekend version of The London Times) which had Christian Candy boasting about his company’s fantastic cash position. I understand the article quoted Candy as saying that he and his brother Nick, were replacing their £45 million yacht with a £63 million model as they were so cash rich.
Candy & Candy have certainly been hit by the down turn as rich Russian buyers disappeared from the London scene, much as they might claim the opposite. I happen to know that the new luxury yacht has been “delayed,” indefinitely, and not making repayments on the $356 million Beverly Hills condo loan does not exactly speak to a cash-rich position. Either way, it is the sort of battle that will provide good entertainment for the foreseeable future. Forbes has a few more details here.