Lehman: 95 pct of creditors back bankruptcy plan

AP News
Posted: Nov 29, 2011 8:26 PM
Lehman: 95 pct of creditors back bankruptcy plan

Lehman Brothers Holdings Inc. said Tuesday that an overwhelming majority of its creditors support its latest bankruptcy plan.

The failed investment bank notified the U.S. Bankruptcy Court for the Southern District of New York that 95 percent of its creditors support the plan and related settlements under Chapter 11 of the bankruptcy code.

The company says 98 percent of creditors who voted are in favor of the company's third amended joint plan.

Among those backing the plan are members of a group of senior bondholders, some of the holders of notes issued by Lehman Brothers Treasury Co. BV, and eight administrators managing 87 foreign affiliates.

A court confirmation hearing for the plan is scheduled for Dec. 6.

Lehman also said it has resolved a majority of the objections to the plan through negotiations and by making some "non-material" amendments.

"The global settlements should avoid contentious litigation and allow for accelerated distributions to creditors," said Lori Fife, one of Lehman's bankruptcy attorneys.

Lehman's was the biggest bankruptcy filing in U.S. history. Its failure triggered more than 75 separate bankruptcy proceedings.

The company had more than $600 billion in assets on its books before it collapsed in September 2008.

Creditors have some $450 billion in claims against the company.