Funds associated with David Tepper sued to block CWCapital Asset Management LLC from recovering more than $500 million in interest from the mortgage on Manhattan's largest apartment complex.
CWCapital has controlled Stuyvesant Town-Peter Cooper Village since Tishman Speyer and BlackRock handed the property over to lenders in 2010 after its value plunged during the financial crisis and tenants blocked a rent increase. The city announced last month that Blackstone Group LP is leading a deal to buy the complex for $5.3 billion.
The suit was filed Thursday in state Supreme Court in Manhattan by Appaloosa Investment LP and three other funds.
According to the suit, CWCapital, which represents the mortgage lenders on the defaulted loan, is seeking to collect about $566 million in interest that has run on the mortgage since 2010, at a rate of 3%.
"If CWC is permitted to collect and retain this default interest, it will constitute a significant and unprecedented windfall to CWC," Appaloosa said in the suit.
Michael Goodwin, a spokesman for CWCapital, declined to comment on the lawsuit.
The case is Appaloosa Investment LP v CWCapital Asset Management LLC, 653741/2015, New York State Supreme Court, New York County (Manhattan).
