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Capmark Financial 'to enter bankruptcy protection'

Published on 15 Oct 2009 under category: legal

A major real estate firm could be about to file for bankruptcy protection, according to a source.

Capmark Financial looks set to enter Chapter 11 in the next two weeks, Reuters has reported.

The news provider cited a "source with direct knowledge of the situation" as informing it of the information.

It is claimed that the bankruptcy protection will be filed by the end of October at the latest.

The commercial property company, which also owns a bank, is set to continue to operate while it is in bankruptcy and it is currently in talks with its bondholders and lenders, the source added.

Earlier this week, a former director of Leeds United Football Club filed for bankruptcy at Leeds Crown Court.

Simon Morris, a property entrepreneur, has previously seen his SRM Holdings Group and 36 of its subsidiaries go into administration.

Administrator Bob Maxwell commented that bankruptcy was "inevitable".

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.