Judge rules for Stuy Town senior lender

Despite efforts made by junior debt holders Pershing Square Capital Management and Winthrop Realty Services, the senior lenders on Stuyvesant Town and Peter Cooper Village will be allowed to proceed with a planned foreclosure auction, according to Crain’s. The ruling, handed down today by a New York State Supreme Court judge, blocks the junior lenders’ attempt to wrest control of the properties from the CW Capital-represented primary bond holders. Sources say that the junior lender partnership plans to appeal the decision. The controversy over Stuyvesant Town’s future began after owner Tishman Speyer defaulted on its loan this year for the residential complex, which it purchased for $5.6 billion in 2006. [Crain’s]