Bloomberg News

Lehman Brothers Wins Dismissal of ‘Minibond’ Appeal

October 27, 2011

(Updates with judge’s decision in second paragraph.)

Oct. 27 (Bloomberg) -- Lehman Brothers Holdings Inc. won dismissal of an appeal by so-called minibond investors who tried to overturn a bankruptcy judge’s ruling in the defunct firm’s favor.

In April, Ka Kin Wong and other investors appealed U.S. Bankruptcy Judge James Peck’s decision to let the defunct firm settle derivatives transactions in a way that affected their effort to get more money for the minibonds, a type of structured note issued by Lehman. The appeal can’t be heard until Peck writes a final order, a U.S. District judge Naomi Reice Buchwald said in a court filing today.

Hong Kong investors bought the securities from various sellers before New York-based Lehman filed for bankruptcy in 2008. Lehman’s request to Peck to dismiss the suit filed by Ka Kin Wong is still pending, the district judge said.

The bankruptcy court case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--With assistance from Bob Van Voris in New York. Editors: John Pickering

To contact the reporters on this story: Linda Sandler in New York at lsandler@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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