NEW YORK (Reuters) - Capmark Financial Group Inc., the commercial real estate company created through a 2006 leveraged buyout of certain GMAC assets, is preparing to file for bankruptcy possibly by the end of next week, according to a source with direct knowledge of the situation.
The company, which owns a bank that will continue to operate within bankruptcy, is in negotiations with lenders, bondholders and the FDIC that will result in a filing by the end of October at the latest, the source said.
They are working on details of a debt-for-equity swap that will take place to bring the company back out of bankruptcy, he said.
Last month, Capmark said it may file for Chapter 11 bankruptcy protection after soured loans left it with a $1.62 billion second-quarter loss. It said stockholders had negative equity of $1.14 billion as of June 30.
(Reporting by Caroline Humer; Editing by Anshuman Daga)
