A former hedge fund manager will serve as one of the final directors of Lehman Brothers Holdings.
Thomas Knott, the founder of Akasha Capital, was one of seven members of the slate that will oversee the final liquidation of the bankrupt investment bank and its disappearance. The group, which also includes a pair of Goldman Sachs veterans, the former chief restructuring officer of Refco Inc. and the former CEO of Morgan Stanley's Asia business, will take office when Lehman's latest liquidation plan is approved by a judge, possibly today.
New York hedge fund Fir Tree Capital, one of the Lehman creditors that will split about $65 billion, was among the group that helped pick the new board, and said in a statement that it sought to "attract best-in-class director who will work to maximize value." The hedge fund said it interviewed individuals "highly respected in a range of critical areas, including real estate, derivatives, private equity and restructuring."
Lehman is expected to sputter along for between three and five years as it waits for real-estate and other markets to rebound before selling its remaining assets.