Capmark Financial files for bankruptcy protection

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Capmark Financial Group files for bankruptcy protection amid mounting loan losses

On 5:51 pm EDT, Sunday October 25, 2009
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CHICAGO (AP) -- Capmark Financial Group, one of the nation's largest commercial real estate lenders, has filed for bankruptcy protection amid mounting bad debt.

Capmark has been hurt by rising losses on mortgage loans. In its filing Sunday in Delaware bankruptcy court, the company listed total debt of $21 billion and assets of $20.1 billion.

Last month, the Horsham, Pa.-based company posted a $1.6 billion quarterly loss, as it set aside $345.8 million to cover loan losses during the quarter ended June 30. The company had been in talks with lenders and bondholders to restructure its debt so that it could stay in business.

Capmark was created in 2006 after a private equity group led by KKR & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners bought the commercial real estate business of lender GMAC LLC.