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Capmark Financial files for bankruptcy protection

October 26, 2009|Bloomberg News

Capmark Financial Group Inc., the lender owned by firms including Goldman Sachs Group Inc. and KKR & Co., filed for bankruptcy protection after posting a second-quarter loss of about $1.6 billion.

The company listed consolidated debt of $21 billion and consolidated assets of $20.1 billion as of June 30 in Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Del.

Horsham, Penn.-based Capmark is one of the largest U.S. commercial real estate finance companies, with more than $10 billion in originations, according to Moody's Investors Service.

The company services more than $360 billion of debt.

Capmark, formerly known as GMAC Commercial Holding Corp., said it had struck a deal with Warren Buffett's Berkshire Hathaway Inc. and Leucadia National Corp. to sell its loan servicing and mortgage business to the companies for as much as $490 million, according to a Sept. 2 statement.

The company had its senior unsecured ratings lowered to C from Caa1 by Moody's Investors Service after the announcement of the potential sale, its release of the operating results and its restructuring efforts, according to a Sept. 9 credit opinion issued by Moody's.

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