NEW YORK CITY-Failed investment bank Lehman Brothers Holdings Inc. got approval by US Bankruptcy Court Judge James Peck to send its liquidation plan to creditors for a vote, giving them a say in the matter after the bank filed for bankruptcy in September 2008, Bloomberg reports. Creditors now have until Nov. 4 to vote on the proposal, and Lehman will return to court in December to request approval of the plan, the article said.
During the hearing, Lehman’s bankruptcy attorney Harvey Miller said total claims would come to approximately $360 billion, which he described as “bordering on the miraculous” in getting to this stage in the case, Bloomberg reported. The proposal is the result of a settlement Lehman reached with senior bondholder Paulson & Co. and Goldman Sachs Group Inc., who opposed an earlier plan to eliminate remaining assets.
At this point, the two groups now support the new plan, and Lehman says they have the support of creditors holding claims of more than $100 billion, according to the report.
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On the CRE side, GlobeSt.com previously reported that Lehman is in the process of selling its majority stake in a 10-building office portfolio located in Rosslyn, Virginia for $1.26 billion. It is also selling its 90% ownership stake in 200 Fifth Ave., the 800,000-square-foot International Toy Center Building overlooking Madison Square Park, in a deal valued at $700 million.
The case is filed under 08-13555 of the US Bankruptcy Court, Southern District of New York, Manhattan.
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