Lehman: Major creditors support revised repayment plan
7/1/2011NEW YORK — Lehman Brothers is getting broader support for its new bankruptcy plan.
The investment bank, which filed for bankruptcy at the height of the financial crisis in 2008, said Friday that creditors holding claims of $100 billion have approved its payment plan.
The plan will give creditors a "fair and reasonable" outcome, Lehman CEO Bryan Marsal said. If approved, creditors "will avoid the costly, uncertain and protracted litigation that would undoubtedly follow in the absence of this compromise solution."
Lehman says it has about $65 billion to settle $325 billion in claims.
Lehman was the largest bankruptcy in U.S. history when it filed for Chapter 11 in September 2008 and listed $613 billion in debts.
The new plan must still be approved by a majority of creditors and the federal bankruptcy court. Alternative plans will be put on hold while Lehman moves its proposal forward.
Lehman Brothers Holdings Inc. also said that it has settled derivative claims with seven of the 13 largest banks. Lehman expects settle an additional claim "shortly," resolving a total $9.6 billion in derivative claims for $6.2 billion.