Capmark Files for Bankruptcy With $21 Billion in Debt
One of the largest U.S. commercial real estate finance companies. Formerly known as GMAC Commercial Holding Corp., services more than $360 billion of debt.
Palm Coast, FL – October 26, 2009 – Capmark, one of the largest finance companies in the commercial real estate market filed for Chapter 11 bankruptcy.
By: Dawn McCarty Oct. 26, 2009 (Bloomberg)
Capmark Financial Group Inc., the lender owned by companies 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, according to Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. Forty-three affiliates also sought protection.
Capmark, based in Horsham, Pennsylvania, 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. It has struggled as the default rate on commercial mortgages held by U.S. banks more than doubled to the highest since 1994.
Toby’s Commentary: Capmark’s failure stems from an increasing number of defaults in the commercial real estate sector. Capmark has some troubled loans in South Florida. In August, the South Florida Business Journal reported that the company filed a $48.5 million foreclosure lawsuit against the 308-unit Beach Place apartment complex in North Miami Beach.
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That is a train coming
The stock market also see’s it. The oldtimers would put their ears to the rail to hear it as it sent vibrations before the rest could hear it. Gold should be $1500 in a week at this rate.