Capmark Files for Bankruptcy
October 26, 2009 by Stephen Kersey
Filed under Business
Following a massive second-quarter loss of $1.6 billion, Capmark Financial Group, a lender owned by Goldman Sachs and KKR & Co, among other companies, has filed for bankruptcy protection. As of June 30, Capmark had consolidated debt of around $21 billion and assets of $20.1 billion.
Capmark is one of the largest commercial real estate finance companies in the United States with more than $10 billion in originations. The company, formerly known as GMAC Commercial Holding Corp., controls more than $360 billion in debt and has struggled due to the rapid increase of the default rate on commercial mortgages held by U.S. banks.
Businesses that currently borrow from Capmark will be saved and continue doing business with the company. Some will be sold to other lenders for full value if concerns over Capmark’s ability to honor the loans continue. According to filed court documents, Capmark owes $7.1 billion to its 30 largest creditors.
Bankruptcy (Image: Flickr)
