A foreclosure auction for Stuyvesant Town-Peter Cooper Village apartment complex was postponed after senior creditors sued to block a group led by Pershing Square Capital Management LP from gaining control.
A New York state Supreme Court Judge in Manhattan set a hearing for Sept. 2 on the case, according to a press release Thursday from CW Capital Asset Management LLC, the special servicer for the senior mortgage. Bill Ackman's Pershing Square and Winthrop Realty Trust had planned an Aug. 25 foreclosure auction after buying mezzanine debt on Manhattan's largest apartment complex.
Bank of America Corp. and U.S. Bancorp, trustees for the senior mortgage holders, filed the lawsuit against the Pershing and Winthrop venture Wednesday.
Senior lenders, who had been given permission to foreclose in June, also agreed not to initiate an auction before the hearing, according to a person with knowledge of the proceedings who was not authorized to speak publicly.