UPDATE 1-Sumitomo Mitsui sues Credit Suisse on Capmark loan

(Adds Credit Suisse declining to comment)

NEW YORK Oct 20 (Reuters) - A Sumitomo Mitsui Financial Group Inc (8316.T) affiliate sued Credit Suisse Group AG (CSGN.VX), saying the Swiss bank failed to reimburse $21.64 million for its share of a loan to troubled commercial real estate company Capmark Financial Group Inc.

In a lawsuit filed Tuesday in Manhattan federal court, Sumitomo Mitsui Banking Corp said Credit Suisse sold it a $200 million stake in a $5.25 billion bridge loan, a form of temporary financing, made to Capmark, in 2006.

Capmark repaid $590.6 million of the bridge loan as part of a May refinancing, Sumitomo said, adding it expected Credit Suisse to reimburse $22.72 million to reflect Sumitomo's pro rata share. But Credit Suisse paid the Japanese bank only $1.08 million and refused to repay the remainder.

Credit Suisse spokesman Duncan King declined to comment.

Created through a 2006 leveraged buyout of some assets of auto finance and mortgage provider GMAC, Capmark last month said it might file for Chapter 11 bankruptcy protection after soured loans left it with a $1.62 billion, second-quarter loss and negative $1.14 billion of shareholder equity.

Capmark has been in talks with lenders, bondholders and the Federal Deposit Insurance Corp that could result in a bankruptcy filing by the end of October, a person with direct knowledge of the matter said last week. [ID:nSP460515]

The lawsuit is Sumitomo Mitsui Banking Corp v. Credit Suisse et al, U.S. District Court, Southern District of New York, No. 09-8868. (Reporting by Jonathan Stempel; editing by Leslie Gevirtz and Andre Grenon)