Paulson, Other Lehman Creditors File Rival Bankruptcy Plan

Dec 16 2010 | 1:14am ET

Six months after first crying foul over Lehman Brothers Holdings’ bankruptcy plan, 10 creditors led by Paulson & Co. have offered a roadmap of their own.

The group, which also includes hedge fund Fir Tree Partners and the California Public Employees’ Retirement System, said their plan would more equitably divvy up the $57.5 billion that the defunct investment bank has left. The deal, unsurprisingly, offers more to senior unsecured creditors, who would get 17.4 cents on the dollar under the original plan, and 24.5 cents under the new plan.

“The plan represents a fair allocation of value for all Lehman creditors,” Fir Tree’s David Salanic said.

The creditors, who among them have more than $12 billion in claims against Lehman, filed their plan yesterday in New York bankruptcy court. Lehman replied that its June plan was simply a “base for negotiations” and that it hopes “to reach consensus as to a joint Chapter 11 plan.”


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.