Paulson Lawyer Says Lehman ‘Hope’ Plan Hopeless

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.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.