Stuy-Town Auction Put on Hold

NEW YORK CITY-A foreclosure auction on Peter Cooper Village and Stuyvesant Town that was to be held Monday won’t happen until at least the middle of next week. The new date for the auction, to be held under the direction of court-appointed referee Melanie Cyganowski, is Wednesday, Oct. 13, according to documents filed Monday at US District Court in Manhattan. No explanation for the postponement was offered in court papers.

When the auction takes place, it will be under the auspices of the senior debt holders, rather than the partnership that bought $300 million of senior mezzanine debt on the 80-acre multifamily complex for $45 million this past August. Known as PSW NYC LLC, the partnership of William Ackman’s Pershing Square Capital Management and Winthrop Realty Trust attempted to foreclose on the mezz debt, but suffered a series of judicial setbacks culminating in an Appellate Division court’s refusal last week to stay the senior debt holders’ plans.