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Lehman aims to exit bankruptcy within 24 months

Lehman aims to exit bankruptcy within 24 months

A top Lehman Brothers executive said Wednesday that the company's bankruptcy case could be wrapped up within two years.
Restructuring expert Bryan Marsal, who replaced longtime chief Richard Fuld as Lehman's chief executive at the end of 2008, told a bankruptcy judge that liquidators could finish their work of winding down the Lehman estate within 18 months to 24 months.
Lehman _ once the nation's fourth biggest investment bank _ filed the biggest bankruptcy in U.S. history on Sept. 15. Many key assets have since been sold.
Liquidators must resolve about 750 outstanding derivatives contracts and coordinate 76 separate international insolvency proceeedings linked to the main Lehman case.
Some have said the case could take up to 10 years.
Also, U.S. Bankruptcy Judge James Peck was expected to appoint an independent investigator in the case. The appointment is required because of the size of the case and stakeholders had asked for it.
The scope of the investigation has yet to be determined.
The Walt Disney Co. had asked for the investigator in a court motion filed in the fall, but the request was postponed as Lehman's lawyers and advisers worked to create more order in the case.
Disney has been joined by Bank of America, a group of Harbinger hedge funds, New York state Comptroller Thomas DiNapoli, and plaintiffs in class action lawsuit against Lehman.
Lehman also faces other investigations run by U.S. attorneys in the Southern District of New York, the Eastern District of New York and the District of New Jersey, as well as the Securities and Exchange Commission.
A lawyer from the Southern District of New York's prosecutor's office asked the court to change the proposed order for an examiner to prevent interference with pending criminal investigations.


Updated : 2021-07-25 15:09 GMT+08:00