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Lehman: Joint plan supported by voting holders of 98% of claim amount
By Caroline Salls
Pittsburgh, Nov. 29 - Lehman Brothers Holdings Inc. and its affiliated debtors have garnered overwhelming support among every class of creditors eligible to vote for their third amended joint Chapter 11 plan, according to a company news release.
In total, Lehman said the plan and related settlements are supported by 95% of creditors in number and 98% of creditors in amount of those who have voted. Every single class voted to accept the plan.
According to the release, the plan is supported by Lehman's creditors' committee, members of an informal group of senior bondholders, virtually all of the proponents of a non-consolidation Chapter 11 plan, numerous holders of notes issued by Lehman Brothers Treasury Co., BV, who asserted substantial guarantee claims against the holding company, eight foreign administrators managing 87 foreign affiliates and most other significant creditors.
In addition, Lehman said it has resolved the majority of plan objections and informal comments through good-faith negotiations and the addition of non-material plan amendments.
"It has taken Herculean effort by many people to reach this point," Lehman chief executive officer Bryan Marsal said in the release.
"The overwhelming support the plan has received demonstrates that, while reaching a mutual agreement among these disparate parties was complex and challenging, it was worth the effort and was clearly the right path to take."
Lori Fife, one of Lehman's lead bankruptcy attorneys, said in the release, "To approach confirmation with virtually unanimous support of creditors who asserted claims in the amount of $450 billion is unprecedented.
"The global settlements should avoid contentious litigation and allow for accelerated distributions to creditors."
The plan confirmation hearing is scheduled for Dec. 6.
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 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.
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