Lehman Bankhaus gets $6.6 billion claim under intercompany settlement

By Caroline Salls

Pittsburgh, Feb. 3 - Lehman Brothers Holdings Inc. has reached an agreement with the insolvency administrator for Lehman Brothers Bankhaus AG settling all intercompany relationships between Lehman's U.S. debtors and Lehman Brothers Bankhaus, according to a company news release.

Lehman Brothers Bankhaus is the second largest of Lehman's foreign affiliates.

Under the agreement, which is subject to approval in the company's U.S. Chapter 11 proceedings and in a German proceeding, Lehman Brothers Bankhaus will have $6.6 billion in allowed claims.

In addition, Lehman Brothers Bankhaus supports the company's first amended plan of reorganization, which was filed last week in the U.S. Bankruptcy Court for the Southern District of New York.

"This agreement is a milestone in the resolution of the Lehman proceedings and is in line with our overall approach to favor compromises with affiliates and avoid lengthy and costly litigation," Lehman chief executive officer Bryan Marsal said in the release.

"We look forward to continuing our conversations with affiliates and other stakeholders in the coming months as we move forward toward confirmation of the amended plan."

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.

© 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.