Hedge fund bid to block Stuy Town foreclosure denied

Appaloosa Investment has been denied its bid to block a Stuyvesant Town and Peter Cooper Village foreclosure, Reuters reported. The hedge fund, which is headed by manager David Tepper and owns over $750 million of the $3 billion in commercial mortgage-backed securities bonds on the property, had argued that special servicer CWCapital was not acting in the best interests of creditors when it filed to foreclose on the 11,200-unit complex Feb. 16, and that a bankruptcy or reorganization would be preferable. U.S. District Judge Alvin Hellerstein disagreed, saying Appaloosa “is not likely to be impaired or impeded” if the foreclosure is successful. [Reuters]