Capmark Financial Group Inc., the bankrupt lender to office and apartment builders, will reorganize around a bank unit that it has propped up with more than $900 million since June, company lawyers said.
Capmark Bank of Midvale, Utah, will be a key asset in the Horsham, Pa., company's plan to get out of bankruptcy after it escapes from a "financial hurricane," attorney Martin Bienenstock told U.S. Bankruptcy Judge Christopher Sontchi on Tuesday during a court hearing in Wilmington, Del.
"At the end of the process, we hope to continue to own that bank," Bienenstock said.
Capmark is a commercial real estate finance company that makes loans, services loans and manages investments in commercial mortgage debt.
The company, partly owned by Goldman Sachs Group Inc. and Kohlberg Kravis Roberts & Co., and 43 affiliates filed for bankruptcy on Oct. 25, blaming falling property values and a drop in lending.
Capmark made two contributions to Capmark Bank to maintain enough cash in the bank to satisfy state and federal banking regulators, company attorney Michael Kessler said in court Tuesday.
Capmark did not include the $11 billion-asset bank in its Chapter 11 filing.