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Commercial real estate lender Capmark Financial Group received approval Tuesday from the US Bankruptcy Court to sell its North American servicing and mortgage banking business to Berkadia Commercial Mortgage.
Capmark initially proposed to the bankruptcy court it would sell the business for $515m, a transaction expected to close by the end of the year, according to a statement Tuesday.
Capmark previously entered an agreement regarding the sale to Berkadia, a newly formed entity owned by Berkshire Hathaway and Leucadia National Corp. Under the terms of the agreement, Capmark had 60 days from the date of its Chapter 11 bankruptcy filing to exercise the put option. The sale was subject to approval by the bankruptcy court.
The bankruptcy filing was part of a larger restructuring effort at Capmark and certain subsidiaries — not including Capmark Bank, which was excluded from the filing. Capmark Bank received $600m of new equity from Capmark and should continue its business unaffected by the bankruptcy proceedings
Write to Diana Golobay.
