Tuesday, 5 May 2015
Last updated 6 min ago
Mar 1 2010 | 3:49am ET
Appaloosa Management is none too happy with the plans to foreclose on two giant Manhattan apartment complexes, and is demanding a say in the proceedings.
The $12 billion Short Hills, N.J.-based hedge fund last week asked a federal court for permission to intervene in the matter of Stuyvesant Town and Peter Cooper Village. The hedge fund, which owns bonds backed by about one-quarter of the $3 billion in mortgages on the sprawling complexes, said the management company acted “irrationally and imprudently” in pushing for foreclosure, and accused CW Capital Management of having “irreconcilable conflicts of interest.”
According to Appaloosa, CW should have pushed for bankruptcy for the joint-venture—between real estate giant Tishman Speyer Properties and BlackRock Realty—that paid $5.4 billion for Stuy Town and Peter Cooper Village in 2006. The route they chose instead, foreclosure, could force bondholders to pay transfer taxes—which amount to $100 million—twice.
What’s more, CW has a conflict as both the servicer of the mortgages and a major debtholder.
Stuy Town and Peter Cooper Village—model middle-income housing developments along the East River—are home to more than 25,000 people and cover some 25 city blocks.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…