NYC’s Biggest Foreclosure Halted After New Creditor Emerges

New York’s biggest-ever foreclosure auction, for a penthouse at the One57 luxury tower near Central Park, has been halted after a new creditor emerged saying it’s owed money -- for about $83 million worth of gasoline and jet fuel -- by the owner of the apartment.

Unit 79 at the Billionaires’ Row tower -- bought in 2014 for $50.9 million -- was scheduled to be sold at auction tomorrow, in a seizure forced by a Luxembourg lender seeking to recoup an unpaid $35.3 million mortgage. The U.S. Justice Department intends to collect any remaining proceeds, claiming the owner bought the condo with illicit gains from Nigerian crude-oil sales.