Lehman emerges from bankruptcy; distributions set to begin April 17

By Caroline Salls

Pittsburgh, March 6 - Lehman Brothers Holdings Inc. and its affiliates emerged from Chapter 11 bankruptcy when their plan of reorganization took effect, according to a news release.

The company said it will begin making distributions to creditors on April 17. Distributions will be made to record holders of claims as of March 18.

According to the release, a new board of directors will guide Lehman Brothers Holdings and its affiliates as they move toward a complete liquidation of their assets, following a strategy to efficiently and expeditiously maximize results for creditors.

"Our objective remains to provide the best results possible for creditors - by continuing to strategically position assets to produce strong values, to pursue the resolution of disputed claims and other matters in litigation and to manage expenses in line with the asset disposition process," Lehman president and chief operating officer and Alvarez & Marsal managing director John Suckow said in the release.

As previously reported, estimated holding company creditor recoveries under the third amended plan confirmed in December include

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

• Holders of senior unsecured claims will recover 21.1%;

• Holders of senior affiliate claims will recover 15.6%;

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

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

• Holders of convenience claims will recover 26%;

• Holders of convenience guarantee claims will recover 17%;

• Holders of general unsecured claims will recover 19.9%;

• Holders of affiliate claims will recover 14.4%;

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

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

• Holders of subordinated claims and Section 510(b) claims will 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 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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