Monday, July 18, 2011

Lehman Lacks Consensus for $65 Billion Plan

Lehman Brothers Holdings Inc. won’t win creditors’ approval for its $65 billion plan to liquidate its assets in bankruptcy, hedge fund Centerbridge Capital Partners LLC said in a court filing, according to Bloomberg.

“Numerous” other creditors may join Centerbridge in voting against Lehman’s plan, a “flawed construct” that “subsidizes” some groups at others’ expense, it said. Anchorage Capital Group LLC said it was backing Centerbridge, according to a filing yesterday in U.S. Bankruptcy Court in Manhattan.

Lehman shares trimmed earlier losses after Centerbridge’s opposition was reported, and closed down 5.8 percent at 4.9 cents in over-the-counter trading in New York yesterday.

Lehman said this month that creditors holding more than $100 billion in claims gave their support to the company’s latest payout plan, which allots more money to a group including Goldman Sachs Group Inc. and less to bondholders including Paulson & Co. The two rival groups signed onto the revised plan after battling to control the largest corporate liquidation in U.S. history…..

Fascinating, huh? Read more at http://www.bloomberg.com/news/2011-07-15/lehman-liquidation-plan-won-t-succeed-hedge-fund-centerbridge-says.html

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