It looks like there comes some rattling noise in US commercial real estate market at the moment. So sentiment in commercial real estate in US is not so favourable towards REITs stocks IMO.
Capmark Financial Files for Bankruptcy Published: Monday, 26 Oct 2009 | 1:40 AM ET By Reuters (source from www.cnbc.com)
Commercial real estate company Capmark Financial filed for bankruptcy protection on Sunday, wiping out the investment of several private equity firms including Kohlberg Kravis Roberts & Co.
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 4.46 --- UNCH (0) ]and JPMorgan Chase [JPM 45.23 -0.48 (-1.05%) ] among others, but that it had not reached an agreement on a prearranged bankruptcy.
The company said its Utah-based bank, Capmark Bank, is not part of the filing. Capmark Investments, Capmark Securities and its Asian, Indian and European units are also not in the bankruptcy, it said.
A company spokeswoman was not immediately available for comment.
Capmark listed $20.1 billion in assets and $21 billion in liabilities as of June 30, 2009 in the bankruptcy filing, which was made in U.S. Bankruptcy Court in Wilmington, Delaware. -----------------------------------------------------------
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MOF Price at posting:
33.0¢ Sentiment: LT Buy Disclosure: Held
