Capmark financial files for bankruptcy protection

Commercial real estate company Capmark Financial Group Inc. filed for bankruptcy protection yesterday in the US Bankruptcy Court in Wilmington, Delaware after posting a second-quarter loss of about $1.6 billion.

The company said in a statement the move was due to conditions in the financial and commercial real estate markets and a lack of available capital.

Capmark Bank is not part of the filing, the company said. Capmark Investments, Capmark Securities and its Asian, Indian and European units are also not in the bankruptcy, it said.

The lender owned by firms including Goldman Sachs Group Inc. and KKR & Co., listed consolidated debt of $21 billion and consolidated assets of $20.1 billion as on 30 June.

It has been negotiating the terms of the bankruptcy with its creditors, which include banks Citigroup and JPMorgan Chase among others, the BBC reported Capmark as saying.

It has also been in talks with the Federal Deposit Insurance Corp.(FDIC) because of the Utah-based bank it owns.