Capmark, Creditors Spar Over Deal In $2B Loan Row

Law360, New York (October 14, 2010, 6:01 PM EDT) -- Capmark Financial Group Inc. began a push Thursday for a settlement with secured lenders on a $1.5 billion loan that unsecured creditors say will divert cash from their stake in the bankruptcy.

Capmark General Counsel Thomas Fairfield took the stand in the U.S. Bankruptcy Court for the District of Delaware to defend the mortgage servicing firm’s decision in May 2009 to essentially trade unsecured debt for the $1.5 billion secured loan — a move that, at the time, was necessary to avert bankruptcy, according to Fairfield....
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