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Administration March 30, 2011
Lehman Bankruptcy Creditor Group Suggests New Reorg Plan
March 30, 2011 (PLANSPONSOR.com) – A Lehman Brothers bankruptcy court creditors group that includes the California Public Employees Retirement System (CalPERS) has asked that its reorganization plan proposal be considered when Lehman’s own plan is.
Reported by Fred Schneyer
A news account from Reuters Legal said the creditor group’s plan would combine claims and assets of Lehman’s various units and pay creditors from a single pool. Lehman’s plan would treat each entity separately, allotting payouts to creditors from the entity that owed them money, Reuters said.
“Coordinating the approval process for the competing disclosure statements will promote efficiency and fairness,” the creditor group said in a motion. The group said rival reorganization plans should be considered simultaneously to “prevent any party from claiming an advantage through procedure over substance.” In March, Goldman Sachs Group said it is part of a creditor group that may also file an alternative plan for Lehman.
About $1.2 trillion in claims were filed against Lehman after its collapse into bankruptcy during the financial crisis in September 2008. Many claims were dismissed, and Lehman Chief Executive Bryan Marsal estimated in January that allowed claims would be about $322 billion and total payouts about $60 billion.
The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.