Barclays Capital is seeking $15 million from D.E. Shaw Group over a defaulted mortgage loan the New York hedge fund giant guaranteed.
Barclays Capital Real Estate asked a judge for summary judgment against D.E. Shaw, Reuters reports. The bank said Westland Development defaulted on a $212.3 million loan it made in 2006, guaranteed by two D.E. Shaw entities. But even though Westland allegedly failed to pay $182.7 million owed at maturity in July, D.E. Shaw’s payment guarantee was capped at just $15 million.
The two D.E. Shaw entities listed as guarantors of the fund are the firm’s Composite Fund and D.E. Shaw Real Estate Holdings.