meta content='0;url=http://www.rschafer.com' http-equiv='refresh'/ Schafer Mortgage: Capmark Financial Group (Formerly Known As GMAC Commercial Holdings Corp.) Files For Chapter 11 Bankruptcy Protection
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Monday, October 26, 2009

Capmark Financial Group (Formerly Known As GMAC Commercial Holdings Corp.) Files For Chapter 11 Bankruptcy Protection

Capmark is (was?) one of the largest equity real estate and mortgage - related investment managers with $3.49 billion in investments under management and has a global commercial mortgage servicing portfolio of more than $288 billion. There's just one little problem...they have $21 billion in debt and only $20 billion in assets.

The plan seems to be that Berkshire Hathaway and/or Leucadia National will but or share in the servicing portfolio. Capmark is heavily in debt to Citibank, Deutsche Bank and Wilmington Trust.

History -

In March 2006 GM divested itself from GMAC Commercial Holdings selling to Goldman Sachs, KKR and Five Mile Capital Partners for 1.5 billion in cash and pay off of all intra-company debt owed GMAC. All in, the deal came to $9 billion. GM retained 21% interest in the new entity, Capmark.

You might remember that in December of '08 the Fed Reserve Board voted 4 to 1 to allow GMAC to transform itself into a bank holding company. In that same month, GMAC drew $5 billion from the TARP. Nice to see that money was put to good use.

ResCap Holding is the parent for GMAC Mortgage, GMAC RFC (Residential Funding Corp), Ally Bank, DiTech.com and Homecomings Financial.

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