Stuy Town creditors sue to force foreclosure

Creditors have sued to force the struggling Stuyvesant Town and Peter Cooper Village complex into a foreclosure sale. Bank of America and U.S. Bank National Association, leading senior creditors with $3 billion in debt holdings on the 80-acre property, filed a complaint in federal court in New York yesterday, asking for approval to foreclose on the property and have it sold. Tishman Speyer and BlackRock had said last month that they would hand in the keys to the complex, which they purchased in 2006 for a staggering $5.4 billion, after missing a $16.1 million debt payment. That turnover has been delayed because of a debate over who would be responsible for the $90 million in property transfer taxes. Trustees requested in the complaint that they be able to use the proceeds from the sale to cover expenses including the mortgage, late charges, and exit and legal fees. The foreclosure process is likely to take 12 to 18 months, according to Fitch Ratings. [Bloomberg]