Lehman July 31

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Recovery Funds

1. Lehman Increases Money Recovery Estimate to $92.2 Billion

   Jul 30, 2015 | The Wall Street Journal

   By Joseph Checkler
   
   
   Lehman Brothers Holdings Inc., which collapsed nearly seven years ago, increased its estimate of how much money it will recover to $92.2 billion, thanks to gains in real estate, derivatives and private-equity investments. In a Wednesday filing with U.S. Bankruptcy Court in Manhattan, Lehman increased the number...

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Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Recovery Funds

1. Lehman Increases Money Recovery Estimate to $92.2 Billion

   Jul 30, 2015 | The Wall Street Journal

   By Joseph Checkler

   Lehman Brothers Holdings Inc., which collapsed nearly seven years ago, increased its estimate of how much money it will recover to $92.2 billion, thanks to gains in real estate, derivatives and private-equity investments.

   In a Wednesday filing with U.S. Bankruptcy Court in Manhattan, Lehman increased the number, excluding operating costs, by $1.8 billion from its last quarterly estimate. Such increases have been a hallmark of the failed bank since it collapsed into bankruptcy in 2008.

   Of the $92.2 billion, Lehman already has paid out $72.4 billion to so-called third party, or non-Lehman, creditors. In April, Lehman made its seventh distribution to outside creditors, paying them $6.3 billion. For those creditors—among them a number of hedge funds such as Paulson & Co. that spent the years after Lehman’s collapse buying claims at steep discounts—the increased recoveries are adding hundreds of millions in profits already booked.
   

   Including money given to Lehman and its affiliates, the total amount returned is nearly $100 billion. In March, Lehman said it expects to make its next distribution early this fall.

   Lehman, once the world’s fourth-largest investment bank, collapsed into the largest bankruptcy ever in September 2008. Since then, the estate has recovered billions of dollars in cash for the benefit of creditors.Advertisement

   Bankruptcy professionals under the direction of Alvarez & Marsal Inc. managed the New York holding company’s assets until Lehman’s exit from chapter 11 more than three years ago, when a reorganized company that was overseen by a new board of directors emerged.

   Lehman has been careful throughout its case not to sell off assets at bargain-basement prices, and it has paid off for the estate. As of April 2, the company still had about $1.14 billion in commercial real-estate assets, $181 million in loans and residential real estate and $1.99 billion in private equity investments, according to the Wednesday filing...

   For full story:

   http://www.wsj.com/articles/lehman-increases-money-recovery-estimate-to-92-2-billion-1438284880
   

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