Appeal of New York Court Injunction of Foreclosure of Stuyvesant Town Mezzanine Loans Denied
BOSTON, Sep 28, 2010 (GlobeNewswire via COMTEX News Network) -- Winthrop Realty Trust (NYSE:FUR) and Pershing Square Capital Management, L.P. announced today that the Appellate Division of the New York Supreme Court denied the emergency relief requested by their joint venture, PSW NYC LLC ("PSW"), seeking to modify the September 16, 2010 injunction issued by the Trial Court or, alternatively, to stay the Mortgage Lenders' planned property foreclosure while the merits of PSW's pending appeal is determined. As a consequence, the Mortgage Lenders may proceed with their planned foreclosure on Peter Cooper Village and Stuyvesant Town set for October 4, 2010.
The decision by the Appellate Court is not a ruling on the merits of the appeal from the Trial Court's September 16th injunction, which PSW intends to vigorously pursue. Neither the Trial Court nor the Appellate Court has issued final decisions on the merits of the underlying contract dispute relating to the proper interpretation of the subject intercreditor agreement. PSW intends to continue to pursue its claims that the Mortgage Lenders have improperly interfered with PSW's efforts to foreclose on the equity interests that serve as collateral for PSW's $300 million of mezzanine loans.
If the property foreclosure proceeds and PSW's rights are vindicated, PSW intends to pursue all available claims and causes of action against the Mortgage Lenders and their special servicer, CW Capital Asset Management, for their actions in blocking PSW's equity foreclosure.
PSW stated: "Unfortunately, this decision may have the effect of precluding the ability of PSW and the tenants at Peter Cooper Village and Stuyvesant Town from participating in the restructuring of the ownership of the property and implementing a permanent affordable housing solution."
Winthrop Realty Trust is a NYSE-listed real estate investment trust (REIT) headquartered in Boston, Massachusetts. Additional information on Winthrop Realty Trust is available on its Web site at www.winthropreit.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may individually or collectively impact the matters herein described. These are detailed from time to time in the "Risk Factors" section of Winthrop's SEC reports. Further information relating to Winthrop's financial position, results of operations, and investor information is contained in Winthrop's annual and quarterly reports filed with the SEC and available for download at its website www.winthropreit.com or at the SEC website www.sec.gov.
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SOURCE: Winthrop Realty Trust
CONTACT: Global Strategies Group Ryan Toohey 212-260-8813 917-280-2198
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