JPMorgan Chase & Co and Deutsche Bank AG , which hold $1.2 billion of Capmark Financial Group Inc loans, are among banks demanding collateral in exchange for loosening terms that put it at risk of default, Bloomberg said, citing people familiar with the matter.

JPMorgan and Deutsche Bank each hold more than $600 million of loans to the commercial mortgage lender, according to a list of lender commitments obtained by the agency.

Capmark, the former GMAC LLC unit owned by KKR & Co and Goldman Sachs Group Inc , is being pressed by lenders to pledge $1.5 billion of commercial mortgage assets against at least $5.5 billion of bank loans, Bloomberg said, quoting the people familiar with the matter, who declined to be identified because the talks are private.

JPMorgan Chase and Deutsche Bank could not be reached for comment by Reuters.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Rupert Winchester)

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