Lehman gets court approval of Fenway Capital repurchase settlement

By Caroline Salls

Pittsburgh, May 13 - Lehman Brothers Holdings Inc. received court approval of a compromise with Fenway Capital, LLC, Fenway Funding, LLC, Hudson Castle Group Inc. and Deutsche Bank Trust Co. Americas, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the compromise will result in a repurchase of assets under a repurchase agreement with Fenway Capital and a subsequent termination of the repurchase agreement, as well as the cancellation of a commercial paper program with Fenway Funding.

According to the motion, termination of the repurchase agreement and cancellation of the commercial paper program would allow debtor Lehman Commercial Paper Inc. to end a lawsuit regarding the repurchase agreement in the SunCal cases and enable Fenway Capital to seek dismissal of claims against it in the SunCal adversary proceeding.

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. Its Chapter 11 case number is 08-13555.

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