Agreement Reached with Key Stakeholders on Lehman Brothers Second Amended Joint Chapter 11 Plan
Derivatives Claims of Seven Financial Institutions Settled Under Derivatives Framework
Lehman Brothers Holdings Inc. (LBHI or Lehman) and its 22 affiliated Chapter 11 debtors announced today that creditors holding claims in excess of $100 billion are in support of the Second Amended Plan and Disclosure Statement. Thirty institutions and certain of their affiliates have executed Plan Support Agreements (PSAs).
Those signing PSAs include substantially all of the proponents of the two alternative plans that were proposed earlier this year. The proponents of the alternative plans have agreed to hold those plans in abeyance while Lehman moves forward toward approval of its Amended Disclosure Statement and confirmation of its Amended Plan.
Bryan Marsal, LBHI''s Chief Executive Officer, said: "This Amended Plan is based on intensive discussions, analysis and input from many parties. It provides for a global settlement with creditor groups and will avoid the costly, uncertain and protracted litigation that would undoubtedly follow in the absence of this compromise solution. The Plan provides a fair and reasonable outcome and will accelerate distributions to creditors."
Marsal continued: "Our goal from the outset has been a fair economic compromise that expedites administration of these cases and provides the best outcome for creditors. This Plan achieves that objective. The support of this Amended Plan by creditors who represent more than $100 billion in claims filed is a major step forward. The Official Committee of Unsecured Creditors (UCC) and various creditor representatives have worked with us in a constructive manner to achieve this balanced compromise."
In addition, Lehman has entered into settlement agreements based on the derivatives claims settlement framework that was proposed on May 31, 2011 to thirteen institutions with seven of the thirteen largest banks that have asserted derivative claims. Lehman expects to enter into a settlement agreement with an additional bank shortly thereby resolving $9.6 billion in derivative claims and corresponding guarantee claims for $6.2 billion. Daniel Ehrmann, Lehman''s co-head of Derivatives, stated: "Our objective has been very clear: to settle derivatives claims with our big bank counterparties in a fair, consistent and efficient manner. The reconciliation, settlement and allowance of claims of these large financial institutions is a significant achievement and will avoid costly and extensive litigation that would have otherwise resulted. We hope that the remaining large banks with derivatives claims will agree to the settlement framework and avoid having the Debtors vigorously litigate their claims."
The implementation of the Plan and the Disclosure Statement are subject to the provisions of the Bankruptcy Code, acceptance by the requisite majorities of impaired creditors, Bankruptcy Court approval of the Disclosure Statement and confirmation of the Plan.
Contacts:
Lehman Brothers Holdings Inc.
Kimberly Macleod, 646-285-9215
kmacleod@lehmanholdings.com
or
Linden Alschuler & Kaplan Public Relations
Steven Alschuler, 212-575-4545
salschuler@lakpr.com
Quelle: www.finanznachrichten.de/...nded-joint-chapter-11-plan-004.htm
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