Court confirms Lehman Brothers' third amended joint Chapter 11 plan

By Jim Witters

Wilmington, Del., Dec. 6 - Lehman Brothers Holdings Inc.'s third amended joint Chapter 11 plan was confirmed Tuesday, according to documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

The confirmation ruling included the holding company plan and the individual plans of affiliated debtors.

No plan effective date was included in the ruling.

As previously reported, estimated holding company creditor recoveries include:

• Holders of priority claims and secured claims would recover 100%;

• Holders of senior unsecured claims would recover 21.1%;

• Holders of senior affiliate claims would recover 15.6%;

• Holders of senior affiliate guarantee claims would recover 15.2%;

• Holders of senior third-party guarantee claims would recover 12.2%;

• Holders of convenience claims would recover 26%;

• Holders of convenience guarantee claims would recover 17%;

• Holders of general unsecured claims would recover 19.9%;

• Holders of affiliate claims would recover 14.4%;

• Holders of non-Racers trust third-party guarantee claims would recover 11.5%;

• Holders of Racers trust third-party guarantee claims would recover 7%;

• Holders of subordinated claims and Section 510(b) claims would receive no recovery; and

• Holders of equity interests are not expected to receive any distribution.

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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