Banks Unsecured Creditors on $4.8B in Capmark Loans

Commercial banks and other lenders are unsecured creditors on $4.8 billion in loans made to Capmark Financial, Horsham, Pa. — loans that Citibank serves as lead agent on. The bankruptcy filing by Capmark does not specifically identify the other lenders on the facility which once totaled $5.5 billion and was made back in 2006 when Capmark — formerly known as GMAC Commercial Holding Co. — was being sold to a group led by Kohlberg Kravis & Roberts. Other unsecured creditors contacted by National Mortgage News said they believe their debts are in fact secured. A Citibank spokeswoman said she could not comment but stressed that Citibank is the agent on the credit. A source close to the situation said Citibank's exposure ranges from $500 million to $1 billion. Documents compiled by Bankruptcy.com, show that Citibank put in a $4.62 billion claim on a 2006 loan made to Capmark. "It's a true bank loan," said Peter Chapman who runs Bankruptcy.com. Separately, the bank — which is controlled by the U.S. government — put in another claim for $234 million. Meanwhile, Fitch Ratings on Thursday said a $1 billion revolving "CRE CDO" tied to Capmark remains on "rating watch negative." Fitch is concerned about 11 defaulted loans backing the collateralized debt obligation.