APS Financial

Bad Debt = Bankruptcy Protection for Capmark Financial

 
By BETSY VERECKEY
The Associated Press
Sunday, October 25, 2009; 9:32 PM

 

CHICAGO -- Capmark Financial Group, one of the nation's largest commercial real estate lenders, has filed for bankruptcy protection amid mounting bad debt.

Capmark has been hurt by rising losses on mortgage loans, and has had to foreclose on properties such as the Equitable Building in Atlanta because borrowers were not able to make loan payments. In its Chapter 11 filing Sunday in Delaware bankruptcy court, the company listed total debt of $21 billion and assets of $20.1 billion. It seeks to reorganize under court protection, reducing its debt while continuing to operate its businesses.

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Peter Aman

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