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Facing a deteriorating global economy Capmark Financial Group, commercial real estate lender and investor, posted a $1.1 billion fourth quarter loss (as opposed to the fourth quarter loss of $11.2 million in 2007). If due dates for loans are not extended, the company may have to file for chapter 11 bankruptcy protection.

Capmark asked the U.S. Securities and Exchange Commission for a 15-day extension to file its annual report earlier this month. The Horsham, Pa.-based company said it needed the extension because of the substantial time it has dedicated to negotiating with its lenders to obtain amendments to its bridge loan agreement and senior credit facility “as well as the uncertainty and range of potential outcomes of these negotiations.”

In light of market conditions and Capmark’s recent estimated operating results, it said it has began discussions with lenders under its senior credit facility, where it expects to request modifications to certain terms of both its senior credit facility and bridge loan agreements. Capmark warned there is no assurance that it will be able to reach agreement with the lenders.

Earlier in the week about 94% of lenders of outstanding loans from Capmark’s bridge loan agreement said that they would extend the maturity date of the bridge loan to May 8th. If the lenders can’t extend the loans further, Capmark will have to file for chapter 11.

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Jeremy

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