Commercial real estate lender files for Chapter 11

Philadelphia Commercial real estate lender Capmark Financial Group has filed for bankruptcy protection amid mounting bad debt.

Capmark 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 Chapter 11 filing Sunday in Delaware bankruptcy court, the company listed total debt of $21 billion and assets of $20.1 billion. It seeks to reorganize under court protection, reducing its debt while continuing to operate its businesses.