(Updates with creditor signatures in second paragraph.)
Sept. 29 (Bloomberg) -- Lehman Brothers Holdings Inc. creditors holding more than $140 billion in claims support the company’s latest payout plan, up from $100 billion in July, the defunct firm said.
More than 50 creditors have put that support in writing ahead of a November vote and December hearing to confirm the $65 billion liquidation plan, Lehman said in a filing in U.S. Bankruptcy Court in Manhattan yesterday.
Lehman, which filed the biggest bankruptcy in U.S. history in September 2008, has been settling disputes and gathering votes since July, when it agreed to allot more money to a group including Goldman Sachs Group Inc. and less to bondholders such as Paulson & Co. Both groups had proposed rival plans to pay Lehman’s debts. Lehman also ended a legal battle to extract $11 billion from Barclays Plc and said yesterday it would settle a lawsuit with Bank of America Corp.
Lehman, which holds cash and investments of about $25 billion, has said it aims to start distributing money to creditors in the first quarter. About $13.6 billion in cash comes from derivatives assets, Lehman said in yesterday’s filing. Fees to managers and advisers total about $1.4 billion.
Once the world’s fourth-biggest investment bank, Lehman fought the Paulson group and the Goldman Sachs group of derivatives creditors for months over control of its liquidation plan. Lehman twice amended its proposals to pay claims in response to creditor challenges.
Chief Executive Officer Bryan Marsal has said he intends to raise a total of $65 billion from the firm’s assets in the next few years, including the cash already in hand. He has previously estimated final claims at more than $300 billion.
Lehman filed for bankruptcy with assets of $639 billion.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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