Tishman and Blackrock walk away from Stuyvesant Town
“We have spent the last few weeks negotiating in good faith to restructure the debt and ownership of Stuyvesant Town/Peter Cooper Village. Over the last few days, however, it has become clear to us through this process that the only viable alternative to bankruptcy would be to transfer control and operation of the property, in an orderly manner, to the lenders and their representatives.”
In other words, they couldn't get a modification, so they gave the banks the property.
But if a homeowner walks away from his underwater mortgage its a moral issue!!