The tenants came to a settlement. This was one of the key blocks to a final resolution on the property that had us thinking it would be late next year "at best", but given this settlement, I think it is safe to say that a final resolution by year-end 2013 could even be labeled "likely" at this point. This is definitely a positive for bondholders.
The only negative I can see, is that the rent-controlled units must stay rent-controlled until 2020 to comply with the original J-51 tax abatement and rents are now set through 2020. This obviously crimps potential revenues, but it makes sense that they would have this as a condition. After all, the only way Tishman got the numbers to work in the first place was to mark-to-fantasy, ignore rent control, evade taxes, and team up with the dumbest lender available (yes, I'm talking about you CMBS Market). Also, it is offset by the fact that it allows them to raise revenues
The settlement works out in favor of Wolf Haldenstein Adler Freeman & Herz, the firm representing the tenants, second place prize goes to Venable LLP, counsel for CW Capital. Everyone else lost. The tenants lost and the lender lost. In lawsuits, everyone is a loser except the attorneys.
Interesting side note, I was going through prior posts on this property and all the action seems to happen in October and November. There are some rare August and March posts, but things seem to happen in October and November. Based on this non-scientific analysis, I'm going to go ahead and call it - PCV/ST will get worked out by November 30th, in fact, on November 30th, 2013.