Practice Area: Dispute Resolution / Commercial Litigation
Industry: Real Estate / Commercial Developments
Jurisdictions: Panama, Mexico
Background
LOVILL represents a group of real estate investment and operating companies, subsidiaries of Mexican corporate groups, in a high-profile contractual dispute arising from financing arrangements related to one of Panama’s most prominent commercial real estate developments.
The dispute involved multiple financial institutions and centered on alleged breaches of loan agreements and trust structures governing the financing and operation of a large-scale commercial property. Proceedings were initiated before Panamanian civil courts, placing the matter at the intersection of complex financing structures, trust law, and commercial litigation.
Legal Challenge
The matter presented significant legal and strategic challenges due to:
- The size and complexity of the financing structures
- The number of financial institutions involved
- The risk of precautionary measures, including the potential auction of key assets
- Parallel commercial, financial, and tax considerations
- Cross-border coordination between Panama- and Mexico-based stakeholders
In addition to the litigation, the clients required strategic advice on potential restructuring scenarios and future uses of the commercial asset.
Legal Strategy and Execution
LOVILL acted as lead counsel in the litigation, developing and executing a comprehensive strategy combining procedural defense, substantive legal arguments, and parallel negotiation efforts.
In 2024, the firm achieved significant procedural milestones, including:
- Successfully limiting the scope of precautionary measures
- Halting the auction of the commercial properties
- Securing a court ruling admitting a special motion for early dismissal based on lack of jurisdiction and manifest lack of merit, which proceeded to the evidentiary phase
In 2025, alongside the ongoing judicial proceedings, LOVILL led out-of-court negotiations with the financial institutions and potential third parties, addressing the restructuring of commercial loans and the future operation of the asset.
These negotiations resulted in a global settlement agreement between the property owners and the lending institutions, with the execution of wind-down and restructuring arrangements currently underway.
Concurrently, LOVILL advises one of the operating entities in tax litigation before the Panamanian Tax Authority, relating to revenues generated by the commercial property.
Outcome
- Suspension of asset auction and mitigation of enforcement risk
- Advancement of early dismissal defenses in court
- Successful negotiation of a global settlement with financial institutions
- Ongoing implementation of restructuring and wind-down arrangements
- Coordinated handling of related tax litigation
This matter highlights LOVILL’s experience handling complex, high-value commercial disputes involving financing structures, trust arrangements, and real estate assets, combining litigation strategy, regulatory insight, and negotiation capabilities to protect client interests and facilitate viable long-term solutions in cross-border contexts.
Lead Partners: Isabel Cristina López and Christopher Glasscock
