Capmark Financial Group Inc. Seeks To Restructure Balance Sheet Through Chapter 11 Reorganization Process

HORSHAM, Pa.--(Business Wire)--
Capmark Financial Group Inc. ("Capmark") today announced that Capmark and
certain of its subsidiaries have filed voluntary petitions for relief under
Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Delaware. Capmark intends to use the reorganization process to
implement a restructuring that reduces its corporate debt and maximizes value
for its stakeholders. Capmark`s businesses are continuing to operate in the
ordinary course.

Capmark Bank, which recently received $600 million of new equity from Capmark,
is not part of the filing. The Chapter 11 proceedings are not expected to have
an impact on Capmark Bank, its existing lending commitments and deposits or its
ability to conduct trust services. Capmark Bank will continue to serve its
customers.

Capmark has filed a variety of customary first day motions to enable it to
continue to conduct business in the ordinary course during the Chapter 11
process, including motions to allow Capmark to pay vendors for post-petition
goods and services and to pay salaries and continue benefits to its employees.
The filing should not impact the way Capmark does business with its customers
and partners.

As of October 23, 2009, Capmark and its filing subsidiaries had in excess of
$500 million of cash and cash equivalents (excluding cash held by Capmark Bank)
available to fund its operations. Capmark believes that it has sufficient
current liquidity to continue to satisfy customary obligations associated with
ongoing operations of its business, including payment of employee salaries and
benefits in the ordinary course, payment of post-petition obligations, servicing
advances, and funding of loans.

Jay Levine, president and chief executive officer of Capmark, said: "We view
this reorganization process as an unfortunate but necessary response to recent
unprecedented conditions in financial and commercial real estate markets, which
presented a significant challenge for Capmark and similarly situated finance
companies. By constraining the availability of capital, these difficult market
conditions had a negative effect on all our core businesses."

Mohsin Meghji, chief restructuring officer of Capmark, said: "The Chapter 11
process will give Capmark the opportunity to restructure our balance sheet while
continuing to focus on maximizing value for our principal stakeholders. Over the
past months, Capmark has engaged in extensive and constructive negotiations with
our primary creditor constituencies to reach agreement on a plan of
restructuring. We expect to complete this effort over the coming months."

Capmark`s subsidiaries filing for Chapter 11 protection include Capmark Finance
Inc.; Capmark Capital Inc.; Capmark Equity Investments, Inc.; Mortgage
Investments, LLC; Net Lease Acquisition LLC; SJM Cap, LLC; Capmark Affordable
Equity Holdings Inc.; Capmark REO Holding LLC; Summit Crest Ventures, LLC;
Capmark Affordable Equity Inc. and 33 other Low Income Housing Tax Credit
entities.

In addition to Capmark Bank, the following subsidiaries have not filed for
Chapter 11 at this time: Capmark Investments LP, Capmark`s registered investment
advisor; Capmark Securities, Inc., its registered broker dealer and its Asian,
Indian and European subsidiaries. In the future, certain additional Capmark
subsidiaries may file for Chapter 11 or other applicable protection.

Capmark continues to look for appropriate strategic outcomes for certain of its
businesses in light of Capmark`s financial condition and the ongoing challenges
of the commercial real estate market.

* In July 2009, Capmark Investments sold the management contracts of various
Capmark-sponsored CDOs to Ventras Capital Advisors LLC, and in September it
entered into a non-discretionary sub-advisory agreement with Urdang Capital
Management Inc. with respect to two debt investment vehicles.
* As announced on September 2, 2009, Capmark and certain of its subsidiaries
entered into an Asset Put Agreement with Berkadia Commercial Mortgage LLC,
formerly known as Berkadia III, LLC ("Berkadia") whereby Capmark has the right
to sell to its North American servicing and mortgage banking businesses to
Berkadia. Under the terms of the Asset Put Agreement, Capmark has 60 days from
the date of the Chapter 11 filing to exercise the put option. Capmark intends to
pursue court approval to complete the sale, subject to the receipt of any higher
and better offers.
* On October 16, 2009, two Capmark subsidiaries entered into an agreement
pursuant to which Capmark agreed to sell its military housing business to a
third party. The consummation of the sale is subject to various conditions,
including certain third party consents. Capmark intends to pursue court approval
to complete the sale, subject to the receipt of any higher and better offers.
* Recently a Capmark subsidiary entered into an agreement to sell 100 percent of
the outstanding shares of Premier Asset Management Company, Capmark`s Japanese
loan servicing business, to a third party. Capmark intends to pursue court
approval to complete the sale, subject to the receipt of any higher and better
offers.
* Capmark continues to work with its creditors to determine appropriate next
steps for its Asia businesses. On October 23, 2009, the majority lenders under
Capmark`s senior credit agreement (the "Credit Agreement") agreed to not
exercise any right or remedy under the Credit Agreement against any of Capmark`s
Japanese borrowers relating to certain events of default under the Credit
Agreement, including events of default arising from Capmark`s filing for Chapter
11 protection and the failure to observe certain covenants, for a period of one
month.

Capmark`s financial advisors are Lazard Frères & Co. LLC and Loughlin Meghji +
Company. Capmark`s bankruptcy counsel is Dewey & LeBoeuf LLP.

For more information please visit Capmark`s web site at www.capmark.com.

About Capmark®:

Capmark is a commercial real estate finance company that operates three core
business lines: lending and mortgage banking, investments and funds management,
and servicing.

Forward-Looking Statements

Certain statements in this release may constitute forward-looking statements.
These statements are based on management`s current expectations and beliefs but
are subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. Capmark refers you to the documents that it posts from time to time
on its web site, which contain additional important factors that could cause its
actual results to differ from its current expectations and from the
forward-looking statements contained in this press release.

Such forward-looking statements are made only as of the date of this release.
Capmark expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in Capmark`s expectations with regard thereto or changes in
events, conditions, or circumstances on which any such statement is based.

Media:
Joyce Patterson, 215-328-3842
Joyce.Patterson@capmark.com

Copyright Business Wire 2009