Big commercial lender Capmark files for bankruptcy!
NEW YORK - October 25, 2009 - The Capmark Financial Group, the big commercial real estate finance company cobbled together from pieces of GMAC, filed for bankruptcy on Sunday after struggling with a heavy burden of failing loans and debt stemming from its leveraged buyout three years ago.
Capmark is only the latest to fall victim to continued trouble in the commercial real estate market, which many analysts have said will continue to deteriorate. Many small banks have collapsed this year under the weight of commercial loans.
The company had warned last month that it might seek Chapter 11 protection after reporting a $1.62 billion quarterly loss.
Last month, the company agreed to sell its mortgage loan and servicing business to Berkshire Hathaway and Leucadia National for as much as $490 million. That agreement carried a 60-day expiration date, or around November 2 - unless Capmark filed for bankruptcy, which would give it 60 more days to complete the sale.
Capmark is only the latest to fall victim to continued trouble in the commercial real estate market, which many analysts have said will continue to deteriorate. Many small banks have collapsed this year under the weight of commercial loans.
The company had warned last month that it might seek Chapter 11 protection after reporting a $1.62 billion quarterly loss.
Last month, the company agreed to sell its mortgage loan and servicing business to Berkshire Hathaway and Leucadia National for as much as $490 million. That agreement carried a 60-day expiration date, or around November 2 - unless Capmark filed for bankruptcy, which would give it 60 more days to complete the sale.
