Capmark Financial Group Inc. Thursday won interim court approval to continue using its cash while working through its financial troubles under Chapter 11 bankruptcy protection.
Judge Christopher Sontchi authorized the continued spending by the commercial real estate lender, servicer and investor, according to a document filed in the U.S. Bankruptcy Court in Wilmington, Del.
Because of its bankruptcy filing, the company needed court permission and the consent of lenders to spend funds.
Capmark is pushing for a fast sale of its loan-servicing operation, a fee-generating business, but one that requires considerable cash. As servicer, Capmark has to advance some funds, and it may have to get financing for that obligation in the future, lawyers said.