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Wednesday, November 25, 2009
Memo: 'Good day for Capmark' with $515M Buffett deal

From a memo to Capmark employees yesterday, by boss Jay Levine, after federal bankruptcy court in Delaware agreed for the company to sell its mortgage-banking and loan-servicing business to Warren Buffett-backed Berkadia (Berkshire Hathaway - Leucadia joint venture), for an adjusted $515 million, apparently preserving most of the company's 500-plus jobs at its Horsham headquarters and 1,000 elsewhere in the U.S. from a potential rival bid by rival PNC's Midland Mortgage:

"Today was a good day for Capmark. 

"We had our first lengthy session back in Court to gain clarity on a number of First Day items that required further process, follow up and ultimately confirmation by an Order...

"The Court approved the sale of our North American Servicing and Mortgage Banking business to Berkadia.  That the business could stay intact and employees keep their jobs were two of the benefits cited by Judge Sontchi in his approval. 

"This outcome has been quite uncertain for almost a month, since we first received the indication of interest from PNC/Midland.  This past month has been stressful in many ways, and I cannot tell you how professionally the entire company has handled the many twists and roundabouts this process threw at us... 

"Remarkably, through this uncertainty we have continued to close and deliver new loans to Fannie, Freddie and Ginnie Mae. Without the strong support of the agencies and loyal borrowers, we would not be in the position to complete the sale...  Transition planning will shift into high gear after Thanksgiving, and we hope to close the sale as early as possible in December...

"All salaries and benefits such as healthcare... have been confirmed in today’s Final Order. Today we also received approval for our bonus and severance plans...We will communicate specifics directly after the December 10th hearing...

"On behalf of the entire Executive Committee, I would like to thank each and every one of you for your hard work and dedication during the uncertainties of the last month.  My best wishes to you and your families for a happy and healthy holiday."
 

 

Posted by Joseph N. DiStefano @ 11:54 AM  Permalink | Post a comment
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About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column, which is printed in the business pages of The Philadelphia Inquirer every Sunday, Tuesday, Wednesday, Thursday and Friday. Joe has worked at the Inquirer, mostly, since 1988. He has also written for Bloomberg and Gannett, authored the book Comcasted, majored in economics at Penn, and fathered six children. Reach Joe at 215-854-5194 and JoeD@phillynews.com

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