GMACCM Sale Nears as GM Posts Steep Loss

The sale of GMAC Commercial Mortgage, Horsham, Pa., should close by the end of March, industry sources have told MortgageWire.Negotiations between the buyers -- a partnership that includes Kohlberg Kravis Roberts, Five Mile Partners, and Goldman Sachs -- and General Motors have been going on for a year. One source familiar with the deal said a key issue for attorneys working the sale is "who's on the hook for the reps and warranties if GM files for bankruptcy?" The source said, "If GM goes bankrupt, a judge could set the sale aside." A spokeswoman for General Motors Acceptance Corp., the parent of GMACCM, would only say that the deal is closing "soon." Meanwhile, GM announced March 16 that its financial loss for 2005 was $10.6 billion, $2 billion larger than previously reported. (For the full story on GMACCM, see the March 20 issue of National Mortgage News.)