Capmark Receives ‘Very Signficant, Interesting’ Bid For Servicing Unit

Capmark Financial Group Inc. has reportedly received another bid on its servicing unit. The company had previously received a $490 million bid from Berkadia, a joint venture between Berkshire Hathaway Inc. and Leucadia National Corp., but a bankruptcy judge ordered the company to delay its bid submission deadline, essentially prohibiting Capmark and Berkadia from finalizing the deal.

Capmark filed for bankruptcy in October, claiming $21 billion in liabilities and $20.1 billion in assets.

According to attorney Michael Kessler of Dewey & LeBoeuf, the firm representing Capmark, the company received a "very significant and interesting proposal from another bidder for significantly more money than Berkadia" last Friday, Reuters reports.

Berkadia's bid is for the entire business line and all of Capmark's 1,000-plus servicing employees, whereas the new bid is not as comprehensive, according to Kessler.

Philadelphia Inquirer business reporter Joseph N. DiStefano suggests Midland Loan Services, the commercial mortgage unit belonging to Pittsburgh-based PNC Financial Services Group, may be the mystery bidder.

According to DiStefano, an attorney with Dechert LLP has been eyeing Capmark's bankruptcy proceedings and ‘Midland is asking questions about the pending auction.’

A PNC spokesperson declined to comment on the situation, DiStefano reports.

SOURCES: Reuters, Philadelphia Inquirer


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