Monday, October 22, 2012

Stuy Town Tenant Group cuts out the middle man

The Stuyvesant Town-Peter Cooper Village Tenants Association tenant group wants to cut out the Special and deal directly with bondholders. Here is the letter to tenants, and here is the letter to CW Capital, the Special.

The group, which has been working with Toronto-based Brookfield Asset Management Inc. (BAM/A) on a plan to convert apartments into condominiums and pay off bondholders, said that CWCapital refuses to consider it. “It has thus far been unwilling to work directly with us and to share the information necessary for us to formalize a bid in advance of opening up the property to a formal sale process,” the association wrote. “CWCapital’s overall response to our attempts to engage it has been to stall and delay.”
Although some saw this as a negative, it clearly shows there is a bid for the property that could result in a $0 loss to the Trust. The lawyers are definitely taking their pound (or ton in this case) of flesh first though.


crabsofsteel said...

I highly doubt that the TA or Garodnik realize that it would take 3.5B and not 3B to pay the loan off in full. That's a bit north of current valuation. However, it also shows that CWC is indeed asleep at the wheel.

Concrete Jungle said...

Really? I bet Garodnik doesn't, but I'd guess the TA does.

crabsofsteel said...

my pal who reads the TA blog says they don't know about the fees and advances, but maybe Brookfield does. In any case, someone should make it clear to them that they have o choice but to negotiate with CWC as the controlling noteholder.