Capmark Financial Group, one of the nation's largest lenders of Miami commercial real estate lenders, has filed for bankruptcy protection accompanied by mounting bad debt.
Capmark has provided loans for many south beach real estate projects and developers in South Florida, including Dennis Stackhouse and AWE Talisman.
The firm said that the motions they filed will allow them to continue paying vendors and salaries, and that it should not impact the way Capmark does business with its customers and partners.'
Capmark and its filing subsidiaries had in excess of $500 million of cash as well as cash equivalents as of October 23, 2009 they said in a statement.
The move could add to concern that the Miami commercial real estate market is struggling as much as the residential side.
According to a Reuters report, a group of funds composed of Kohlberg Kravis Roberts & Company, Goldman Sachs Group's Goldman Sachs Capital Partners and Five Mile Capital owned 75.4% of Capmark, while GMAC owned 21.3%, and Capmark employees and directors owned most of the remainder.
The report said as of June 30 that Capmark listed $20.1 billion in assets and $21 billion in liabilities in its Wilmington, Deleware bankruptcy filing.
Capmark was t formerly he commercial property arm for GMAC's and had recently reported a second-quarter loss of $1.6 billion.
Capmark Bank, Capmark Investments, Capmark Securities and Capmark's Asian, Indian and European subsidiaries are not included in the filing the company said.
Subsidiaries filing for Chapter 11 protection included Capmark Finance, Capmark Capital, Capmark Equity Investments, Mortgage Investments, Net Lease Acquisition, SJM Cap, Capmark Affordable Equity Holdings, Capmark REO Holding, Summit Crest Ventures, Capmark Affordable Equity and 33 other low-income housing tax credit entities, it said.
Contributed by MLR Realty
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