Lehman Brothers eyes settlement related to Heritage Fields Project

By Lisa Kerner

Charlotte, N.C., Nov. 24 - Lehman Brothers Holdings Inc. and Lehman Commercial Paper, Inc. asked the court to approve their entrance into a settlement agreement related to the Heritage Fields Project, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is set for Dec. 15.

Lehman Brothers would receive a discounted pay off in the amount of $125 million, as well as repayment of a $28 million participation interest plus interest and a residual cash-flow participation because of its interest in the Heritage Fields Project.

Once the transactions are completed, Lehman will no longer have any interest in the Heritage Fields Project other than a cash-flow participation.

Also, State Street Bank and Trust Co. will become the lender to the Heritage Fields Project.

The debtors are still in the process of finalizing the settlement details.

Heritage Fields is a 3,723-acre master plan development in Irvine, Calif.

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008 in the U.S. Bankruptcy Court for the Southern District of New York. 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.