Capmark Financial preparing for bankruptcy soon
Editor’s Note: After reading the tone of this press release, it comes to my attention that this bankruptcy might of been part of the plan so they could reorganize the debt and later down the line become profitable because the debt was at a much more manageable level. It would be hard to believe with the U.S. residential home market deteriorating that they could of not seen the commercial real estate market following suit. It will be very interesting to see how this plays out down the road.
Reuters, New York - Capmark Financial Group Inc., the commercial real estate company created through a 2006 leveraged buyout of certain GMAC assets, is preparing to file for bankruptcy possibly by the end of next week, according to a source with direct knowledge of the situation.
Capmark losses signaling more bank failures to come?
Editor’s Note: Capmark failing would not be a good sign of a recovery. The mainstream media is finally catching on to the commercial real estate market and its decline. Most analysts are in agreement that we are going to see worst times ahead before we start seeing commercial real estate prices stabilize. A good friend of mine who is in the commercial market, told me that business is off by over 50% compared to last year and he see it getting worse as well.
Bloomberg, New York - Capmark Financial Group Inc.’s possible collapse may signal a new wave of real estate losses for banks — this one tied to business property — that could push the year’s tally of failures past 100.