• Case Alert: In re Capmark Financial Group, Inc.
  • November 5, 2010
  • Law Firm: Young Conaway Stargatt Taylor LLP - Wilmington Office
  • The Official Committee of Unsecured Creditors (the “Committee”) filed a motion for standing to pursue claims against the senior secured lender, in which the Committee sought to avoid $1.5 billion of liens as being either fraudulent or preferential. The debtors countered with a motion to approve a settlement with their senior secured lender, pursuant to which the debtors would (1) engage in a “collateral swap” with their lenders that would result in the lenders foregoing their collateral for an upfront cash payment, (2) release causes of action against the lenders, and (3) save the estates in excess of $300 million in interest, fees, and litigation costs.