Lehman's hearing on loan obligations to 1407 Broadway is adjourned

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Lehman Brothers Holdings, Inc.'s hearing on forcing compliance with lending obligations was adjourned to Jan. 13, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Lehman Brothers borrower 1407 Broadway Real Estate LLC and its asset manager, PGRS 1407 BWAY LLC, asked the court to force Lehman to comply with its lending obligations.

The 1407 Broadway entities also are asking the court to grant them relief from the automatic stay so they can declare Lehman and Lehman Commercial Paper Inc. in default of the loan, suspend all loan payments and find a replacement lender for the unfunded portion of the loan.

Lehman agreed to lend 1407 Broadway $127.25 million in January 2007 and made an initial loan of $106 million, a court motion said.

1407 Broadway said it has made six draw requests since late April 2009, seeking a total of $3.7 million of the unfunded balance, but Lehman has failed to meet its lending obligations.

New York-based Lehman Brothers Holdings was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.