Capmark Financial Group Inc. (Capmark) has received approval from the U.S. Bankruptcy Court for the District of Delaware to complete the sale of its North American servicing and mortgage banking businesses to Berkadia Commercial Mortgage LLC (Berkadia) pursuant to the previously announced asset put agreement dated Sept. 2, as amended Nov. 23.
The sale to Berkadia, a newly formed entity owned by Berkshire Hathaway Inc. and Leucadia National Corp., for a total purchase price of $515 million, was recommended to the court by the unsecured creditors' committee and Capmark's management. The transaction is expected to close by year-end.
It was widely speculated that Midland Loan Services, the commercial mortgage servicing division of PNC Financial Services Group Inc., would top Berkadia's original bid of $408 million. But according to Capmark attorney Michael Kessler, the Midland bid covered only a portion of Capmark's servicing portfolio and some of the company's 1,000 employees.
The new Berkadia deal, on the other hand, is comprehensive, involving Capmark's entire $288.6 billion portfolio and all of the unit's staff, Reuters reports.