Former GMAC lending arm will file BK

Discussion in 'Wall St. News' started by turkeyneck, Oct 25, 2009.

  1. SAN FRANCISCO (MarketWatch) -- In another sign that the commercial real-estate market may be struggling as much as the residential side, Capmark Financial Group Inc., one of the nation's largest commercial lenders, likely will file for bankruptcy this weekend, according to a media report Saturday.

    Capmark, formerly GMAC LLC's commercial real-estate arm, recently reported a second-quarter loss of $1.6 billion and signaled it may seek bankruptcy protection. The company will file this weekend, The Wall Street Journal reported in its online edition, citing an unnamed source.

    An investor group comprised of KKR & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners bought the company from GMAC in 2006. The group owned about 75% of the company, while GMAC and its employees owned the rest, according to the report, citing data through March 31.

    Horsham, Pa.-based Capmark is selling its bank operation to Berkshire Hathaway Inc. and Leucadia National Corp., but the bank would not be part of the bankruptcy filing, according to the report.
  2. i love it! buffet is at the buffet slurping up assets at pennies on the dollar.