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Capmark Files for Bankruptcy

HORSHAM, PA-After filing a $1.6-billion Q2 loss, the firm will seek bankruptcy protection.

By Ryan Clark | Updated on October 25, 2009

HORSHAM, PA-According to reports, Capmark is filing for bankruptcy protection. After filing a $1.6-billion Q2 loss, the commercial real estate lender is seeking for protection under Chapter 11. The lender has $21 billion of debt and $20.1 billion in assets.

The lender had already agreed to sell its North American servicing and mortgage business to a JV of Berkshire Hathaway Inc. and Leucadia National Corp. KKR & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners created Capmark after they purchased the commercial real estate business from GMAC, LLC.

“The Chapter 11 process will give Capmark the opportunity to restructure our balance sheet while continuing to focus on maximizing value for our principal stakeholders,” says Mohsin Meghji, chief restructuring officer of Capmark, in a statement. “Over the past months, Capmark has engaged in extensive and constructive negotiations with our primary creditor constituencies to reach agreement on a plan of restructuring. We expect to complete this effort over the coming months.”

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