Lehman Brothers Holdings disclosure statement for revised plan OK'd

By Lisa Kerner

Charlotte, N.C., Aug. 30 - Lehman Brothers Holdings Inc.'s disclosure statement related to its revised second amended joint Chapter 11 plan of reorganization was approved on Tuesday by the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is set for Dec. 6.

Solicitation packages will be distributed to creditors beginning Sept. 23. The voting deadline is Nov. 4.

More than 45 creditor entities asserting claims in excess of $130 billion have executed plan support agreements, including two new agreements announced Tuesday with affiliates in Singapore and the Netherlands, a Lehman news release said.

"Our goal from the start of this case has been to move expeditiously toward an economic compromise that would allow for prompt distributions to creditors," chief executive office Bryan Marsal said in the release.

Lehman said that prior to its bankruptcy cases, it had assets of $639 billion on its consolidated balance sheet and operated with over 7,000 legal entities in more than 40 countries. The company's insolvency resulted in over 75 separate and distinct bankruptcy proceedings.

Revised plan filing

As previously reported, Lehman recently filed a revised version of its second amended joint plan and disclosure statement ahead of Tuesday's hearing.

There were no changes to proposed creditor recoveries under the revised documents.

The revised disclosure statement includes a new paragraph requested by the JPMorgan entities indicating that JPMorgan did not participate in the drafting of the revised disclosure statement and disagrees with some of the descriptions and characterizations of transactions, litigation, notes, securities, collateral and other matters affecting JPMorgan.

According to the revised disclosure statement, Lehman also made changes to address some of the U.S. Trustee's objections that raised "various concerns over several sections of the disclosure statement."

U.S. Trustee Tracy Hope Davis objected to the disclosure statement on Aug. 11, arguing that the statement does not give voting creditors enough information on several parts of the plan.

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. Its Chapter 11 case number is 08-13555.

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