CW Capital: Back Off, Appaloosa

The company that controls troubled Manhattan apartment complex Stuyvesant Town-Peter Cooper Village told hedge fund Appaloosa to back off yesterday, saying the New Jersey bondholder has no right to try to scuttle the property’s foreclosure proceedings.’

In a brief filed with Manhattan federal court, CW Capital — which represents holders of the $3 billion defaulted mortgage — argued that the hedge fund must gain the support of 25 percent of bondholders to have a say in the foreclosure.

CW also accused Appaloosa of trying to hold up the foreclosure to “maintain its stream of payments” on its bonds, which were bought “at a steep discount” when it was clear foreclosure was coming.

Late last month, David Tepper’s hedge fund filed a motion to stop recent foreclosure proceedings on StuyTown, saying the move would hurt its investment.

Source

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