real estate

Trump bonds queried

The Comisión Nacional de Valores (CNV) has requested an explanation from the legal representatives of Newland Properties Corp. International concerning the bond issue to fund the construction the Trump Ocean Club.

The bond issue for the building, which totaled $220 million, was the largest of its kind made by the Panamanian market.

The CNV issued its request after Newland International Properties sought a court order concerning the design of the building.

Newland has been receiving warnings about potential legal action from the Jumeirah Group since 2007. The group designed and built the Burj Al Arab building in Dubai, which has a similar design to the proposed Trump building.

The law firm representing Newland informed the CNV that it has not informed the bond holders about the court order because it is waiting for Jumeirah to be informed of the judge’s decision, which prohibits the Arab firm from enagaging in advertising and other forms of communication to discredit the Trump project.

The court order does not prohibit Jumeirah from filing a lawsuit against the project.

In its reply to the CNV, the company also argued that it followed all the legal requirements regarding the issuing of the bonds, which have an interest rate of 9.75 percent and which will mature in 2014.

The bonds were mainly sold to institutional investors in the United States.