Lehman Brothers Holdings seeks real estate settlement with Swedbank

By Lisa Kerner

Charlotte, N.C., Jan. 26 - Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc. want the court to approve a settlement agreement with Swedbank AB, New York Branch to resolve deficiency claims and consolidate Lehman's interests in some real estate projects currently divided with Swedbank, according to a Jan. 26 filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is set for Feb. 16.

The settlement agreement principally provides for the following:

• The exchange of certain loans and interests in loans between the Lehman parties and Swedbank;

• The modification of the terms of certain loans;

• Payment to Swedbank by Lehman in the amount of $10 million; and

• The allowance of each of the deficiency claims in the amount of $325 million in full satisfaction of such claims.

As part of the exchange, Lehman will receive and Swedbank will relinquish interests in the loans relating to the properties located at 1107 Broadway in New York, 425 Park Avenue in New York, The Residences at Kapalua Bay in Hawaii, and One American Center in Austin, Texas.

Also as part of the exchange, Swedbank will receive and the Lehman parties will relinquish interests in loans relating to the properties at 1407 Broadway in New York and 1888 Century Park East in Los Angeles.

According to the filing, because the value of the Swedbank loans is greater than the value of the Lehman loans, Lehman will pay Swedbank $10 million.

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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