Goldman Sachs Sued by Capmark to Recover $147 Million Insider Preference

Units of Goldman Sachs Group Inc. GS were sued by Capmark Financial Group Inc., which accused them of wrongly collecting $147 million five months before Capmark went bankrupt.

While they were co-owners of Capmark in May 2009, a group of Goldman units used their influence to help convince Capmark to refinance $1.5 billion in unsecured debt owed to Goldman, according to the lawsuit filed today in Manhattan federal court.

The refinancing allowed Goldman to collect $147 million, including $7 million in cash, based on the new secured loan, according to the lawsuit.“Despite these conflicts and close connections — indeed, as a result of the influence and insider status that its multiple simultaneous roles created — Goldman Sachs actively and directly participated in internal meetings and discussions that led to the secured credit facility, which gave it preferential treatment as a creditor,” Capmark claimed in the lawsuit.

Read the complete article via Goldman Sachs Sued by Capmark to Recover $147 Million – Bloomberg.

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