Judge Approves Lehman Brothers Bankruptcy Plan

Representing Investors Nationwide

Last week, Lehman Brothers Holdings Inc. received a federal judge’s approval to begin winding down the largest bankruptcy in U.S. history. As part of the plan, the Trustee for the bankruptcy estate said he would begin distributing approximately $23 billion in available cash to creditors. The plan also calls for an orderly liquidation of the defunct firm’s remaining assets, bringing the expected total for distribution to approximately $65 billion.

The company announced it will distribute some of the $23 billion to creditors in the first quarter, equating to roughly 18 cents on the dollar claimed for creditors and approximately 21 cents for senior bondholders.

The bankruptcy examiner’s report indicated Lehman failed because of too much debt and risky real estate investments. When the firm filed for bankruptcy, on September 15, 2008, with approximately $613 billion in debt outstanding. The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

The attorneys at Colling Gilbert Wright & Carter have litigated and resolved dozens of Lehman Brothers claims through the Financial Industry Regulatory Authority (FINRA)
arbitration system. Even with a 21 cent payout, bond and note holders are still out approximately 80% of their investment…much of which came in the form of Principal Protected and other Structured Notes.

If you have lost money in Lehman Brothers, please contact our office for a free case evaluation.