It’s happening. The long-awaited bankruptcy of big-time commercial real estate lender Capmark is just about here.
WSJ: In 2006, a group led by KKR & Co., Goldman Sachs Capital Partners and Five Mile Capital Partners acquired the lender GMAC LLC’s commercial-real estate business and renamed it Capmark. As of March 31, the investor group owned about 75% of the company, with GMAC and its employees owning the balance.
The Horsham, Pa., company recently reported a $1.6 billion second-quarter loss and warned it might be forced to seek Chapter 11 bankruptcy protection. KKR has already written down its investment in Capmark to zero.
Capmark recently entered an agreement to sell its North American servicing and mortgage-banking operations to a new company owned by Warren Buffet’s Berkshire Hathaway and Leucadia National Corp. for as much as $490 million. Under the deal’s terms, the sale could occur while Capmark is in bankruptcy, but would require a bigger cash payment. Read the whole thing >
Even before the filing, the battles have begun.
Reuters: A Sumitomo Mitsui Financial Group Inc affiliate sued Credit Suisse Group AG , saying the Swiss bank failed to reimburse $21.64 million for its share of a loan to troubled commercial real estate company Capmark Financial Group Inc.
In a lawsuit filed Tuesday in Manhattan federal court, Sumitomo Mitsui Banking Corp said Credit Suisse sold it a $200 million stake in a $5.25 billion bridge loan, a form of temporary financing, made to Capmark, in 2006.
Capmark repaid $590.6 million of the bridge loan as part of a May refinancing, Sumitomo said, adding it expected Credit Suisse to reimburse $22.72 million to reflect Sumitomo’s pro rata share.