(Updates with members of agreement in second paragraph.)
Dec. 14 (Bloomberg) -- Lehman Brothers Holdings Inc. will cancel all of its existing shares and issue new “trust” stock to creditor representatives so they can help execute its liquidation plan.
Members of Lehman’s “plan trust agreement” include administrators of bankrupt affiliates and creditors representing two groups, one including Goldman Sachs Group Inc. and the other including Paulson & Co., that proposed alternative liquidation plans, according to a filing today with the U.S. Securities and Exchange Commission.
Holders of the new shares won’t own any of the company’s assets, Lehman said. The defunct investment firm, which filed the biggest bankruptcy in U.S. history in 2008, has court approval for a $65 billion liquidation plan to pay creditors.
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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