Unsecureds Blast $965M Capmark Secured Debt Deal

Law360, New York (October 7, 2010, 5:03 PM EDT) -- A group representing certain of Capmark Financial Group Inc.'s unsecured creditors has lodged an objection ripping a proposed $965 million settlement between the bankrupt lender and secured creditors including JPMorgan Chase Bank NA, calling it a scheme to subvert a fair plan.

The proposed settlement, concerning some $1.5 billion in liens granted about six months before Capmark filed for bankruptcy in October 2009, should not be granted because the negotiations between Capmark and the secured lenders were "an elaborate charade," according to Wednesday's motion in the...
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