Tepper tepid on Stuy Town foreclosure

April 21, 2010 05:27PM

alternate textDavid Tepper and Stuyvesant Town

Of the many players featured in the high-stakes drama unfolding at Stuyvesant Town and Peter Cooper Village, David Tepper, who has bought more than $800 million worth of controlling bonds at the property over the last 18 months, is proving to be one of the most volatile and polarizing, according to the New York Observer. Tepper, a hedge fund manager known for his high-risk, high-yield predilections, took legal action in February to guide the distressed property to his liking — a move that is viewed by many in the industry with both incredulity and fascination. But his attitude toward Stuyvesant Town, one of the biggest commercial-deals-gone-sour in recent New York City memory, is one of optimism. Where the special servicer, CWCaptial, picks foreclosure, Tepper, a Goldman Sachs alum, sees an opportunity for bankruptcy and restructuring. It’s a move he — and his attorney, Kathy Patrick of Gibbs & Bruns — believes would save millions. “[CWCaptial] can’t just willy-nilly run off and make their own judgment about this,” Patrick said. “It’s hundreds of millions of dollars that are wholly avoidable if the property is restructured appropriately.”