Judge OKs $975M Capmark Settlement With Lenders

Law360, New York (November 1, 2010, 7:19 PM EDT) -- A bankruptcy judge approved a $975 million settlement Monday between Capmark Financial Group and its secured lenders on a prepetition loan, plotting a course out of Chapter 11 for the commercial mortgage-servicing firm.

Judge Christopher S. Sontchi signed off on the deal in an order filed in the U.S. Bankruptcy Court for the District of Delaware, allowing the debtor to pay back the $1.5 billion loan at a 9 percent discount in return for the release of avoidance claims against banks involved in the loan....
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