Capmark To Sell Mortgage Business For $490M

Law360, New York (September 3, 2009, 6:53 PM EDT) -- Capmark Financial Group Inc. has agreed to sell its servicing and mortgage banking business for $490 million to a joint entity of Warren Buffett's Berkshire Hathaway Inc. and Leucadia National Corp., possibly through a Chapter 11 filing, to offset losses following the real estate market's collapse.

Capmark, a commercial real estate finance company, paid newly formed entity Berkadia III LLC $40 million in cash to enter the agreement Wednesday, the company said.

Under the terms of the deal, Berkadia III will acquire the mortgage assets for...
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