Credit Suisse to pay Highland $ 121 million for Las Vegas deal


This content was published on June 29, 2021 – 12:12 AM

(Bloomberg) – Credit Suisse Group AG must pay Highland Capital Management $ 121 million for a failed Las Vegas real estate deal in 2007, a Texas state court ruled.

The ruling follows an April 2020 Texas Supreme Court ruling dismissing $ 287.5 million in damages awarded to Credit Suisse by a Dallas trial judge and ordering the court to recalculate the $ 40 million. awarded by a jury. The jury found that the bank inflated the valuation used to finance a golf development before the 2008 real estate crash.

The High Court tasked the trial court judge with determining questions relating to pre-judgment interest, how to credit money already received in separate settlements, and damages for one of Highland’s claims. The $ 40 million award increased to $ 121 million due to interest and costs, but also reflected a cut for some of the money Credit Suisse had poured into settlements.

Highland, a Dallas-based alternative investment management firm, invested $ 250 million in the $ 560 million recapitalization loan that Credit Suisse raised for Lake Las Vegas, a luxury golf course development in the desert in difficulty. Lenders have lost almost all of their investment after the borrower defaults and the value of the collateral plummets.

Dallas Judge Dale Tillery delivered the judgment Friday in favor of Claymore Holdings, a subsidiary of NexPoint Advisors and Highland.

“Credit Suisse disagrees with the Texas trial court ruling and believes we have strong grounds for appeal,” spokeswoman Candice Sun said in a statement. “It is important to note that until this matter is fully and definitively resolved by the courts, no payment is due to Highland Capital by Credit Suisse.”

After jurors concluded on some of the claims, the trial judge decided the remainder of the case without a jury and ordered Credit Suisse to pay an additional $ 211.8 million in damages and $ 75.6 million in damages. dollars in interest and fees – the 287.5 million later they came out.

The case is Claymore Holdings LLC v. Credit Suisse AG, DC-13-07858, 18-0403, Texas 134th Judicial District Court, Dallas County (Dallas).

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