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Funds News

Capmark Financial files for bankruptcy

NEW YORK, Oct 25 (Reuters) - Commercial real estate company Capmark Financial [CPFNG.UL] filed for bankruptcy protection on Sunday, undone by declines in the sector and a heavy debt load related to its leveraged buyout.

The company was created out of the commercial real estate assets of General Motors' finance arm GMAC in March of 2006. According to the bankruptcy filing, GMAC owned 21.3 percent of the company's stock while an investor group, which includes Kohlberg Kravis Roberts & Co. [KKR.UL], Goldman Sachs Group's GS.N Goldman Sachs Capital Partners and Five Mile Capital, owned 75.4 percent.

Reporting by Caroline Humer; Editing by Richard Chang

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