Capmark, Third Largest Commercial Servicer, Is Bankrupt

Three years after being sold to an investor group led by Goldman Sachs & Co., Capmark Financial Group — the nation's third largest commercial mortgage servicer — filed for bankruptcy protection, though it has vowed to continue making new loans. The Horsham, Pa.-based company, formerly known as GMAC Commercial Mortgage, services $288 billion of commercial real estate loans. In the first-half it funded just $1.94 billion of product compared to $10.39 billion for all of last year. In its filing, the nonbank lender listed $21 billon in debts and consolidated assets of $20.1 billion. Its other owners include KKR & Co., and Five Mile Capital Partners, Greenwich, Conn. Three years ago General Motors sold 78% of GMAC Commercial to the group for $1.5 billion in cash. At the time it looked like a good deal for Goldman and its partners — until commercial loan delinquencies began to rise and the U.S. economy collapsed in 2008. Capmark has struggled as the default rate on commercial mortgages held by financial institutions more than doubled to the highest rate since 1994. A spokeswoman for Capmark said the company plans to restructure it balance sheet. "We intend to keep making loans," she added.