Options Toolbox

Source URL http://www.reuters.com/article...

Related Companies Berkshire Hathaway Inc. (BRK.A) Capmark Financial Group Inc. KKR Millennium Fund LP Leucadia National Corp.

Related Articles 10/26/2009 The Storm Center: Lazard pushes for quick sale of Capmark origination and servicing assets 10/26/2009 Capmark Financial files for Chapter 11 bankruptcy

Related Deals Berkshire Hathaway/Leucadia National Corporation/North American servicing and mortgage banking businesses of Capmark

Capmark Financial Group Inc., which filed for bankruptcy Oct. 25, has received a substantially higher bid for the company's mortgage and loan servicing businesses, Reuters reported Nov. 4.

Michael Kessler of Dewey & LeBoeuf, which is serving as the company's bankruptcy counsel, said in a bankruptcy court hearing that the new buyer's bid is more than the $490 million bid launched by Berkshire Hathaway Inc. and Leucadia National Corp., according to the report.

The sale of the mortgage and loan servicing business to the Berkshire and Leucadia combination known as Berkadia was part of Capmark's original bankruptcy filing plan.

Kessler said the new bid arrived Oct. 30. He told the court that the new bidder does not want to buy the entire business and has not proposed taking on all of Capmark's servicing employees, the news service said.

Kessler said Capmark wants to continue negotiations with the new bidder, which has until Nov. 20 to submit a final bid, according to Reuters. If a final bid is submitted, the new venture and the Berkadia combination would participate in a Nov. 23 auction. Berkadia's offer requires the deal to close by the end of the year, the news outlet reported.

Capmark is a unit of KKR Millennium Fund LP.