Capmark Financial Group Inc., one of the largest commercial real-estate lenders in the U.S., said Sunday that it and some of its subsidiaries have filed for bankruptcy protection.
The firm said it has filed motions to allow it to continue to pay vendors and salaries, and that the move “should not impact the way Capmark does business with its customers and partners.”
“As of October 23, 2009, Capmark and its filing subsidiaries had in excess of $500 million of cash and cash equivalents … available to fund its operations,” it said in a statement.
The lender added it “continues to look for appropriate strategic outcomes for certain of its businesses.”
The move could add to concern the commercial real-estate market is struggling as much as the residential side.
A group of funds ? composed of Kohlberg Kravis Roberts & Co, Goldman Sachs Group’s Goldman Sachs Capital Partners and Five Mile Capital ? owned 75.4 percent of Capmark, while GMAC LLC owned 21.3 percent, and Capmark employees and directors owned most of the remainder, according to a Reuters report citing the bankruptcy filing.
Capmark listed $20.1 billion in assets and $21 billion in liabilities as of June 30 in its Wilmington, Del.-bankruptcy filing, the report said.
Capmark, formerly GMAC’s commercial property arm, had recently reported a second-quarter loss of $1.6 billion.
The company said its Capmark Bank unit is not included in the filing, nor are Capmark Investments LP, Capmark Securities Inc. and Capmark’s Asian, Indian and European subsidiaries.
Subsidiaries filing for Chapter 11 protection included Capmark Finance Inc., Capmark Capital Inc., Capmark Equity Investments Inc., Mortgage Investments LLC, Net Lease Acquisition LLC, SJM Cap LLC, Capmark Affordable Equity Holdings Inc., Capmark REO Holding LLC, Summit Crest Ventures LLC, Capmark Affordable Equity Inc. and 33 other low-income housing tax credit entities, it said.
(c) 2009, MarketWatch.com Inc. Source: McClatchy-Tribune Information Services.