Commercial mortgage banker Capmark Financial Group Inc. has struck a deal with its lenders that would trim their claims in the bankruptcy case by $100 million and could ease the threat of a potential lawsuit from unsecured creditors.
The nonbank lender – once the property of General Motors -- is seeking more time to control its Chapter 11 case as it works on details of the new settlement, designed to help Capmark avoid "a major obstacle" in its efforts to develop a plan to repay creditors.
That obstacle is an Aug. 12 move by the committee representing Capmark's unsecured creditors, which is seeking to launch litigation on behalf of Capmark against its lenders, according to a report by Dow Jones.
The unsecured creditors say the company has failed to pursue claims stemming from a 2009 debt swap that could bring in an additional $1.5 billion for creditors, and they want to take matters into their own hands.
But Capmark says that if the creditors succeed in moving forward with the lawsuit, it will wreak havoc on the bankruptcy proceedings.
