Mortgage holders for Stuyvesant Town and Peter Cooper Village demanded payment from the landlords within 10 days, a step toward foreclosing on New York's largest apartment complex, two people familiar with the matter said.

A group led by Winthrop Realty Trust, which holds about $300 million of senior mezzanine debt, said in a letter that it intends to pursue "rights and remedies" including a foreclosure sale, according to the correspondence.

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