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FairPoint Communications of Charlotte filed for bankruptcy protection on Monday.
(Robert F. Bukaty/associated Press)
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BANKRUPTCY
Capmark Financial seeks protection
Capmark Financial Group, one of the largest U.S. commercial real estate lenders, has filed for bankruptcy protection amid mounting bad debt, becoming the latest casualty in the still turbulent U.S. real estate market.
The Pennsylvania-based lender has been hurt by rising losses on mortgage loans, and has had to foreclose on properties such as the Equitable Building in Atlanta because borrowers were not able to make loan payments.
In its bankruptcy filing, Capmark listed total debt of $21 billion and assets of $20.1 billion. Last month, it posted a $1.6 billion quarterly loss, as it set aside $345.8 million to cover loan losses in the period ended June 30.
-- Associated Press
Telecom FairPoint files for Chapter 11
FairPoint Communications filed for Chapter 11 bankruptcy protection on Monday, barely 18 months after becoming northern New England's dominant telecommunications provider, fulfilling critics' predictions that the company wasn't up to the task.
FairPoint said it voluntarily filed for protection after agreeing on a deal with key lenders that would lower its debt by about 62 percent.
FairPoint, based in Charlotte, owns and operates phone companies in 18 states with a total of 1.65 million lines. Its largest holdings are in Maine, New Hampshire and Vermont, where it bought Verizon Communications's land lines and Internet network for $2.3 billion in 2008.
The restructuring deal with lenders will allow the company to reduce its debt to $1 billion from $2.7 billion, chief executive David Hauser said.
