Lehman Brothers filed for bankruptcy protection back on September 15th, 2008. With assets worth approximately $639, to put things in big-picture perspective, the Lehman bankruptcy was six times larger than any bankruptcy in this country’s history.
Flash forward to today and recently, Lehman Brothers Holdings Inc.’s creditors, including the country’s largest pension fund, said they object to Lehman’s Chapter 11 bankruptcy plan. Bryan Marsal, a restructuring specialist, presently oversees Lehman Brothers.
Creditors, including the California Public Employees’ Retirement System (a pension fund with assets valued at over $211 billion) and Paulson & Co. (a $35 billion hedge fund firm managed by billionaire John Paulson), claim they are owed a hefty $15.5 billion.
The filing by the creditors read, “The plan establishes a ‘pot’ of assets for distribution and pits creditors of the various estates against each other,” as they believe the plan would ignite inner turmoil and lengthy and unnecessary lawsuits.
“The plan’s proposed allocation of value within the individual debtor estates is seriously flawed…The stakes are too high for parties in interest simply to hope for global peace and later learn that they have no real ability to develop a case in a contested setting,” read the filing.
The group of creditors asked Bankruptcy Judge, James Peck, to have a July 14th hearing in order to consider the plan’s objections and allow for the design of a more widely acceptable Chapter 11 plan. Back on April 14th, Lehman Brothers suggested unsecured creditors recover 10.4 cents to 44.2 cents, on the dollar.