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May 23, 2016

A&M represented the Unsecured Creditors’ Committee of Capmark Financial Group Inc., formerly part of GMAC’s commercial real estate division.

Client Mandate
A&M represented the Unsecured Creditors’ Committee (“UCC”) of Capmark Financial Group Inc. (“CFGI”), formerly part of GMAC’s commercial real estate division. On the date of its bankruptcy filing, CFGI had $20.1 billion of assets located throughout North America, Europe and Asia. CFGI had a large loan origination and servicing department, the latter of which held servicing and sub-servicing contracts with GSEs. CFGI is the holding company for the Utah-based LLC, Capmark Bank, which holds $8.1 billion of commercial real estate assets and, prior to its bankruptcy filing, had experienced some pressure from the FDIC concerning its capitalization ratios.

A&M’s Approach
A&M worked closely with the UCC, evaluating senior management’s capabilities and made recommendations concerning their compensation plans. Based on a core management team, A&M analyzed CFGI’s plans to monetize various business units (such as its servicing business, LIHTC and NMTC businesses), with a focus on the financial and operational impact on remaining operations. 

In addition, A&M assessed the Company’s plans, on an asset-by-asset basis, for disposition of its real estate assets (i.e., invest new capital, foreclose upon, DPO, etc). A&M provided advice to the UCC with respect to approving Capmark management requests for significant loan modifications, waivers and restructurings in a complicated intercompany environment involving debtor and non-debtor entities.

Results
A&M’s involvement allowed the Company’s management to operate within a controlled environment, while providing additional support based on our significant experience in bankruptcies and restructurings in regulated environments. A&M was a key conduit between Capmark management and the UCC; scrutinizing or lending credence to the Company’s plans to maximize recoveries to its creditors. With A&M’s involvement, the Company maintained sufficient liquidity to implement its revised reorganization plan and was able to emerge from Bankruptcy.