Lender posts Q2 loss of US$1.6b; chalks up consolidated debt of US$21b
Capmark Financial Group Inc, the lender owned by companies including Goldman Sachs Group Inc and KKR & Co, filed for bankruptcy protection after posting a second-quarter loss of about US$1.6 billion.
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The company listed consolidated debt of US$21 billion and consolidated assets of US$20.1 billion as of June 30, according to Chapter 11 documents filed on Sunday in US Bankruptcy Court in Wilmington, Delaware. Some 43 affiliates also sought protection.
Capmark, based in Horsham, Pennsylvania, is one of the largest US commercial property finance companies, with more than US$10 billion in originations, according to Moody’s Investors Service.
The company, formerly known as GMAC Commercial Holding Corp, services more than US$360 billion of debt. It has struggled as the default rate on commercial mortgages held by US banks more than doubled to the highest since 1994.
‘All the businesses will be saved and continue with Capmark or will be sold as going concerns for full value,’ attorney Martin Bienenstock, a partner at Dewey & LeBoeuf LLC in New York, which is handling the bankruptcy case, said in an e-mail.
Capmark asked a bankruptcy judge to approve the sale of its loan-servicing and mortgage business to Warren Buffett’s Berkshire Hathaway Inc and Leucadia National Corp for as much as US$490 million. Higher bids would be sought at an auction. The deal was announced on Sept 2, the same day Capmark said that it might filed for bankruptcy. Continue reading
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