Tokyo District Court selected a subsidiary of GMAC Commercial Holding Corp., GMACCM Japan KK, last Friday to submit a plan for the restructuring of Tokyo-based Japan Asset Management K.K., a company that recently went bankrupt.

The plan, if approved, would likely involve several worldwide securitization deals, said Scott Rombach, a GMAC spokesman. However, due to the lag of legal processes, he stressed an uncertain time frame.

"It would take at least two months to settle the deal through Japanese courts," Rombach explained. "I don't know when we'd be ready to securitize."

If things move forward, GMAC will manage Japan Asset Management's extensive portfolio, including at least 150 employees and $9 billion in real estate, sources said.

"We will do servicing, originations, and securitizations," said Rombach. "If our plan is accepted we have the opportunity to acquire the re-organized company."

GMACCM Japan was one of at least 16 companies that submitted restructuring proposals to the Tokyo District Court earlier this year, Rombach said. The selection of GMAC, however, came as no surprise. "Our team was confident that they were going to be chosen," said Rombach.

If the final plan is accepted, Japan Asset Management will serve as a base for GMAC's Japanese businesses. Currently, there are nearly 50 GMAC employees on site in Japan.

Japan Asset Management is a subsidiary of Long-Term Credit Bank of Japan, which was declared insolvent last October. Japan Asset Management's businesses include leasing, property management and general real estate financing.

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