September 03, 2010

Greg Cross represents CWCapital in contentious foreclosure suit

1 min

Venable Bankruptcy Practice Group chair Greg Cross is representing CWCapital in a hotly contested foreclosure case.

CWCapital Asset Management LLC, representing bond holders on the senior mortgage for Stuyvesant Town and Peter Cooper Village complex in Manhattan, filed suit on August 18 to stop William Ackman's Pershing Square Capital Management LP from foreclosing on PCV ST, the company that owned the complex. Pershing and Winthrop Realty, which had purchased a junior loan for 15 cents on the dollar, had sought to foreclose on PCV ST on September 8. The investors in the senior mortgage were planning to foreclose on the property later in September, and filed for an injunction to stop Pershing's foreclosure fearing it would saddle them with losses and undo months of work to ease the eventual transfer of the complex to a new owner.

Both sides are awaiting a ruling to see which foreclosure may proceed.