Commercial Real Estate lender Capmark files for bankruptcy.

[roamer65]

Source: Bloomberg

Capmark files for Chapter 11 bankruptcy.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aACzaZGHTqxQ

---

Here comes the CRE tidal wave. Citibank is going to take a big loss on this one.

[benld74]

1. CRE Tidal Wave? Hey everybody lets sing,,,

If everybody had an mortgage
Across the u.s.a.
Then everybodyd be surfin
Like californi-a
Youd seem em wearing their baggies
Huarachi sandals too
A bushy bushy blonde hairdo
Surfin u.s.a.

Youd catch em surfin at del mar
Ventura county line
Santa cruz and trestle
Australias narabine
All over manhattan
And down doheny way

Everybodys gone surfin
Surfin u.s.a.

Well all be planning that route
Were gonna take real soon
Were waxing down our surfboards
We cant wait for june
Well all be gone for the summer
Were on surfari to stay
Tell the teacher were surfin
Surfin u.s.a.

Haggerties and swamies
Pacific palisades
San anofree and sunset
Redondo beach l.a.
All over la jolla
At waimia bay

Everybodys gone surfin
Surfin u.s.a.

Everybodys gone surfin
Surfin u.s.a.

Everybodys gone surfin
Surfin u.s.a.

[SpiralHawk]

12. Thanks a pantload, Republicon-minded Banksters

[Roland99]

2. ruh roh

[bertman]

3. Uh Oh.

Many of the economists who are not favored by our government and who predicted the crash last year have also been saying that the Commercial Real Estate crash was waiting in the wings for its big moment on stage.

Looks like we might be getting a twofer. President Obama, quick, call Summers and Geithner and Bernanke and ask them how much money's left in the Treasury.


:scared:

[UpInArms]

4. check out who owns Capmark- it's an interesting list

http://www.reuters.com/article/bondsNews/idUSN2516301120091026?sp=true

Capmark, which was created in March of 2006 through a leveraged buyout of the commercial real estate assets of General Motors' finance arm GMAC, had said earlier this year that it might file for bankruptcy.

The company said in a statement the move was due to conditions in the financial and commercial real estate markets and a lack of available capital.

Capmark said that it had been negotiating the terms of the bankruptcy with its creditors, which include banks Citigroup (C.N) and JPMorgan Chase (JPM.N) among others, but that it had not reached an agreement on a prearranged bankruptcy.

<snip>

The bankruptcy is a red mark for private equity firms KKR, Goldman Sachs Group's (GS.N) Goldman Sachs Capital Partners and Five Mile Capital, which bought Capmark for $1.5 billion in cash and more than $7 billion in debt.

According to the bankruptcy filing, the group owned 75.4 percent of the company while GMAC, or the General Motors Acceptance Corp, owned 21.3 percent. Employees and directors owned most of the remaining stock. Equity investors are typically left with nothing after a bankruptcy.

KKR, which wrote down its investment in Capmark to zero earlier this year, has had other failed equity investments this year, including its 2005 purchase of doormaker Masonite. It filed for bankruptcy in March and has since emerged from court.

updated 'cuz I left out the explaining 'graph

[Roland99]

5. Hmm....wonder how the Carlyle Group is doing in this recession.

[HCE SuiGeneris]

6. Are we about to hit the second downward slope of the W?

Yikes.

[mrdmk]

7. Not the only one, Maguire Properties gave some "non-preforming properties to the banks"

link: http://www.reuters.com/article/innovationNews/idUSTRE5792X220090810

<snip>
NEW YORK (Reuters) - Maguire Properties Inc (MPG.N), one of the largest owners of office buildings in Southern California, said two subsidiaries defaulted on mortgage payments but the company is not considering bankruptcy.

"We are not considering bankruptcy," Chief Executive Nelson Rising told analysts on a Monday conference call, adding the company was comfortable with its cash position and optimistic about attracting investment either in its properties or in the company itself.

Maguire shares fell on news of the subsidiaries' default but turned higher after Rising's call. The shares were up 12 cents at $1.01 near midday after falling as low as 71 cents in morning trade.

Earlier, Maguire said in a regulatory filing that the two subsidiaries failed to make debt service payments on mortgage loans associated with properties in Orange County and Los Angeles. It said its board had approved the disposal of several properties to shore up its cash position.

More at the link. Also this is a publicly traded company.

btw: New Century was at one of the location given back to the banks.

[CatholicEdHead]

8. No Sunday night runs on CNBC like last time (yet)

This should be an interesting week, just in time for Halloween. :scared:

[MannyGoldstein]

9. Quick!!! Bail 'em out and give the bankers bonuses!

If all the bankers involved don't have have enormous retention bonuses and soothing vacations, they might leave the company, which would cause the company to go bankrupt.

Oh. wait - they already *are* bankrupt.

Aw, fuckit, so what - taxpayer cash anyway, stat!

[Sen. Walter Sobchak]

10. if you haven't already - kiss your pension goodbye

The exposure to pension funds to commercial real estate is obscene.

[BR_Parkway]

11. And insurance companies as well

[medeak]

13. 2nd wave just beginning

we have another year of this...and more home foreclosures predicted

[Roland99]

14. Could be 2-3 years of the commercial side of things.

Subprime meltdown started over 2 years ago.

[medeak]

15. have 40 commercial tenants

and only one vacancy....thank my stars every day I live in reverse economy (gold mining)