Lehman granted court OK of Swedbank deficiency claim settlement

By Caroline Salls

Pittsburgh, Feb. 17 - Lehman Brothers Holdings Inc. and Lehman Commercial Paper Inc. obtained court approval of a settlement agreement with Swedbank AB, New York Branch that resolves deficiency claims and consolidates Lehman's interests in some real estate projects currently divided with Swedbank, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the settlement:

• Some loans and interests in loans between the Lehman parties and Swedbank will be exchanged;

• Specified loan terms will be modified;

• Lehman will pay Swedbank $10 million; and

• Each of the deficiency claims covered under the settlement will be allowed in the amount of $325 million.

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

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.