Derivatives creditors of a Lehman Brothers Holdings (Lehman
Brothers) subsidiary agreeing to a smaller share of
distributions than they might have recovered through litigation
paved the way for the banks landmark exit from Chapter 11
LBHI emerged from bankruptcy protection on March 6 and is
expected to return over $10 billion to creditors on April 17 in
accordance with the
reorganisation plan approved by a US bankruptcy court last
The actions of Lehman Brothers Special Financing (LBSF)
derivative creditors will be key to the efficient and timely
resolution of Lehman Brothers claims.
The Chapter 11 plan was a compromise between two earlier
proposals: one filed by Lehman Brothers that would have
creditors paid by the relevant Lehman counterparty; the other
filed by Lehman Brothers creditors that would consolidate the
assets of all...