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MG Developer hit with six lawsuits over overdue loan and preferred equity payments
The filings, submitted within eight days starting Aug. 17, include claims that one lender advanced $6M and alleges MG started breaching terms in April after missed interest payments.
MG Developer, a Coral Gables-based builder, is facing six lawsuits alleging it defaulted on millions of dollars in loan and preferred equity payments tied to upcoming projects, according to Bisnow. The complaints name affiliates of the 12-year-old company and were filed within eight days starting Aug. 17 in Miami-Dade County Circuit Court.
The developer said it has been in discussions with investors and business partners named in the cases and that it values those relationships, according to its spokesperson. The suits focus on loans and preferred equity for projects in North Bay Village, Coral Gables, and Doral, some of which were personally guaranteed by the company founder, Alirio Torrealba, and his son, Diego Torrealba.
Bisnow reports that one of the most recent lawsuits was filed Monday by VFI Capital LLC, an entity associated with Galleria Farms and a trust managed by Roy Valencia. VFI claims it loaned $6M last year across two Torrealba-linked entities, including $3M to MG NBV for a planned mixed-use condo development in North Bay Village and $3M to The George Partners for a 13-unit townhome project in Coral Gables.
VFI is seeking more than $6M in damages and alleges MG began breaching debt terms in April by failing to pay interest and again in May after a matured loan payment was not made. The suit also alleges Torrealba took the loan and investment proceeds, then sold his interest in the MG NBV and George Partners entities, breaching terms of the loans, according to Bisnow.