Capmark Financial Group filed for bankruptcy protection in Delaware on Sunday, becoming the latest casualty of a credit crisis now in its third year.

Capmark said in a statement that it will use the bankruptcy “to implement a restructuring that reduces its corporate debt and maximizes value for its stakeholders.”

Jay Levine, president and chief executive of Capmark, said in a press release that the bankruptcy filing is "an unfortunate but necessary response to recent unprecedented conditions in financial and commercial real estate markets, which presented a significant challenge for Capmark and similarly situated finance companies.”

Commercial real estate finance has been hobbled by the absence of securitization. Not a single bond pooling commercial real estate debt has been sold this year, making it tougher for lenders to underwrite new loans.

Capmark is based in Horsham, Pa. The commercial real estate finance company operates three core business lines: lending and mortgage banking, investments and fund management, and servicing. The company services $288 billion worth of commercial property debt.

The company listed 1,000 to 5,000 creditors. Its assets and liabilities totaled more than $1 billion. The judge overseeing the case is Christopher Sontchi.

Capmark Bank is not part of the filing. The Chapter 11 proceedings are not expected to have an impact on Capmark Bank, its existing lending commitments and deposits or its ability to conduct trust services, Capmark said in a statement.

As of Oct. 23, Capmark and its subsidiaries entering bankruptcy had in excess of $500 million of cash and cash equivalents available to fund its operations. Capmark believes that it has sufficient liquidity to continue to satisfy customary obligations associated with ongoing operations of its business, including payment of employee salaries and benefits in the ordinary course, payment of post-petition obligations, servicing advances, and funding of loans.

Capmark’s financial advisors are Lazard and Loughlin Meghji + Co. The company’s bankruptcy counselors are Dewey & LeBoeuf and Richards, Layton & Finger.

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