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Next Stage of Stuy Town Tug of War Will Take Place in Court

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The fight for control of Stuyvesant Town and Peter Cooper Village got hotter last week when hedge fund bigshot Bill Ackman's Pershing Capital Management and partner Winthrop Realty Trust picked up a cool $300 million of the property's mezzanine debt. Ackman and co. scheduled a foreclosure auction for next week, but, says current Stuy Town special servicer CW Capital, not so fast! CW Capital (which had its own under-the-radar plans for a Stuy Town foreclosure in September) has filed papers in state Supreme Court to block Ackman's foreclosure attempt, the Times and Crain's report. The servicer wants an injunction stopping the auction, on the grounds that Winthrop and Pershing still need to pay off the complex's $3.7 billion mortgage. CW Capital is pretty sure Ackman's team doesn't have that kind of money in its piggy bank. WIll the dream of the $200,000 co-op die so soon?
· Opening Legal Salvos in Stuyvesant Town Battle [City Room]
· BofA sues to prevent Stuytown foreclosure [Crain's]
· Stuy Town coverage [Curbed]