Lehman creditors committee member looks to trade covered claims

By Caroline Salls

Pittsburgh, Sept. 25 - Lehman Brothers Holdings, Inc. official committee of unsecured creditors member Shinsei Bank, Ltd. requested court approval to trade the company's covered claims upon establishment of information sharing procedures, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, Shinsei said it is asking the court to confirm that it will not be violating its fiduciary duties as a member of the committee by trading its covered claims during Lehman's bankruptcy case if it adheres to the information-blocking procedures set by the U.S. Trustee.

According to the motion, the procedures will prevent Shinsei's trading personnel from using or misusing confidential information obtained by personnel connected to committee-related activities.

The procedures will also keep the Shinsei personnel from receiving inappropriate information about the committee member's trading in the covered claims before the trades are made.

"Shinsei should not be forced to choose between serving on the committee and risking the loss of beneficial investment opportunities," the committee member said in the motion.

New York-based Lehman Brothers Holdings is the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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