Saturday, 26 July 2014
Last updated 20 hours ago
Jan 19 2011 | 4:59am ET
A lawyer for Paulson & Co. and other Lehman Brothers creditors dismissed the bankrupt investment bank’s plan to exit bankruptcy as Lehman prepares to lay out its plan to do just that.
“The debtors have a ‘hope’ plan which is based upon the hope that creditors accept what the debtors propose,” Christopher Shore told U.S. Bankruptcy Court Judge James Peck last week. But that “hope” is almost certain to be dashed, because the Lehman estate “has no creditor support.”
Lehman has “not used any of the past two years to facilitate inter-creditor negotiations that are going to be essential to moving this process forward,” Shore said.
“From a plan process standpoint then, very little, if any, real progress has been made towards exit,” Shore added.
Shore’s clients, who also include hedge fund Fir Tree Partners and the California Public Employees’ Retirement System, filed a rival bankruptcy plan last month. Paulson and its fellow unsecured creditors claim that plan would more equitably divide the $57.5 billion Lehman has left, offering more money to the unsecured creditors.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…