Stuy Town lenders try to stop foreclosure

TRD New York /
Sep.September 20, 2010 04:30 PM

Stuyvesant Town

Pershing Square Capital Management and Winthrop Realty Trust filed a request today with a state appeals court in Manhattan to stop the Oct. 4 foreclosure planned by senior debt holders at the Stuyvesant Town and Peter Cooper Village residential complex, Edward Weisfelner, a lawyer for Pershing and Winthrop, told Bloomberg News. Pershing, a hedge fund run by William Ackman, and Winthrop, both junior debt holders, lost a bid last week to pursue their own foreclosure sale for the property. A lower court judge issued a preliminary injunction saying they may only proceed if they first pay senior creditors the $3.67 billion that they are owed under the first mortgage. If the court grants a stay, Pershing and Winthrop will still have to argue the merits of their appeal. Senior lenders will respond to the appeal Sept. 24 and the appeals court will decide by Sept. 29 whether to stay the planned foreclosure. Meanwhile, CW Capital Asset Management, the special servicer for the senior mortgage, is seeking to move forward with its foreclosure after Stuyvesant Town owner Tishman Speyer Properties defaulted on a $3 billion senior loan and $1.4 billion of junior debt. CW Capital’s foreclosure would wipe out the investment by junior lenders, according to the filing. [Bloomberg via Crain’s]

 

Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies

After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Stuyvesant Town (Getty)

Layoffs at Blackstone’s Stuy Town management firm

Layoffs at Blackstone’s Stuy Town management firm
From left: Tishman Speyer CEO Rob Speyer, Fiorello LaGuardia and Robert Moses. Inset: Hiten Samtani and Charles Bagli (Getty Images, Wikipedia Commons)

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York

Tuna fish sandwiches and billion-dollar deals: Charles Bagli on other people’s money and the next life of New York
Blackstone's Jonathan Gray and an aerial of Stuyvesant Town (Credit: (Photo by Drew Angerer/Getty Images; iStock)

Stuy Town tenants sue Blackstone to stop rent hikes

Stuy Town tenants sue Blackstone to stop rent hikes
Linda Rosenthal and Stuyvesant Town-Peter Cooper Village  (Credit: Brett Carlsen/Getty Images; Orjan F. Ellingvag/Corbis via Getty Images)

Pol seeks to punish landlords with “warehousing fee” for vacancies

Pol seeks to punish landlords with “warehousing fee” for vacancies
From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

Behind Blackstone’s “capital strike”
October Issue is Live

The Real Deal‘s October issue is now available to subscribers!

The Real Deal‘s October issue is now available to subscribers!
Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images)

Authorities will conduct review of Stuy Town deal in light of Blackstone’s vacancy strategy

Authorities will conduct review of Stuy Town deal in light of Blackstone’s vacancy strategy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...