Capmark Financial Group In c. is a commercial real estate company which was created through a leveraged buyout of few GMAC assets in 2006. They are now preparing to file for bankruptcy possibly by the end of next week, or at the end of the month according to a source.
Capmark owns a bank that will continue to operate while it is in court. It is currently in negotiations with lenders, bondholders and the Federal Deposit Insurance Company that will result in a filing by the end of October.
They are working on details of a debt-for-equity swap that will take place to bring the company back out of bankruptcy, he said. It is not certain how long the court process could take.
Capmark is held privately and has three core businesses. They include lending and mortgage banking, investments and funds management, and servicing. It was created in 2006 when General Motors Acceptance Corp. sold a subsidiary, which was known as GMAC Commercial Holding Corp. Kohlberg Kravis Roberts & Co., Goldman Sachs Group and Five Mile Capital led GMAC for $1.5 billion in cash plus more than $7 billion in debt at the peak of the housing market. Reuters reported that investors will not receive payments through the bankruptcy and that the company will belong to its creditor group, which is led by Citigroup and JPMorgan Chase.
Sources
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