Capmark Financial Group Inc., the lender owned by firms including Goldman Sachs Group Inc. and KKR & Co., filed for bankruptcy protection after posting a second-quarter loss of about $1.6 billion.
The company listed consolidated debt of $21 billion and consolidated assets of $20.1 billion as of June 30 in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Del. Forty-three affiliates also sought protection.
Capmark is one of the largest U.S. commercial real estate finance companies, with more than $10 billion in originations, according to Moody’s Investors Service. The company, formerly known as GMAC Commercial Holding Corp., services more than $360 billion of debt.
The Horsham, Pa,-based company has struggled as the default rate on commercial mortgages held by U.S. banks more than doubled to the highest since 1994. Capmark said on Sept. 2 that it may reorganize under Chapter 11 of the bankruptcy code.
A called placed to Joyce Patterson, a spokeswoman for Capmark in Philadelphia, was answered by a prerecorded message saying that the phone had been disconnected.
According to today’s court documents, $7.1 billion is owed by the company and its units to the 30 largest creditors without collateral backing their claims.
The three biggest are Citibank N.A., as administrative agent under the $5.5 billion credit agreement, with a claim of $4.6 billion; Deutsche Bank Trust Company Americas, as trustee for the 5.875 percent senior notes and the floating senior notes due 2010, with claims of $1.2 billion and $637.5 million, respectively; and Wilmington Trust FSB, as successor trustee for the 6.3 percent senior notes due 2017, with a claim of $500 million, according to court papers.
On Sept. 2, Capmark also said it struck a deal with Warren Buffett’s Berkshire Hathaway Inc. and Leucadia National Corp. to sell its loan servicing and mortgage business to the companies for as much as $490 million.
“Unsecured lenders and bondholders, either in a default or restructuring scenario, would experience substantial losses,” said a Sept. 9 credit opinion issued by Moody’s.
