Lehman Brothers Holdings Inc. (LEH)

 

Barclays Plc (BARC), after defeating Lehman Brothers Holdings Inc. (LEHMQ)’s bid to seize $11 billion for an alleged “windfall” on its purchase of Lehman’s brokerage, has been trying for seven weeks to confirm how much it owes or is owed on the deal, said a person familiar with the case.

U.S. Bankruptcy Judge James Peck in Manhattan granted London-based Barclays at least $800 million of “clearance box” assets, which are certain assets held to clear trades. Peck also ordered Barclays in his Feb. 22 ruling to return any cash it took to James Giddens, the trustee liquidating the remnants of the brokerage, and for now give up its claim to other brokerage assets.

Giddens said in February that he took Peck’s ruling to mean that he had won $4.8 billion in assets from Barclays. His chief trial lawyer, William R. Maguire, said at the same time that Peck’s ruling meant that Barclays, the U.K.’s third-biggest bank, should pay at least $1.4 billion in margin assets, and relinquish its claim to another $1.2 billion.

Peck in his ruling said Barclays should get no cash at all from the deal and denied its claim to margin accounts and other assets. He didn’t define cash or specify the dollar value of some of the assets. Yesterday, after expelling reporters from court, Peck told Barclays to work with Giddens to obtain documentation on how much money is in the accounts, said the person, who declined to be named because the conference was private.

A hearing was set for May 9, the person said.

Barclays Gain
At stake is whether Barclays, which recorded a 2.3 billion- pound ($3.8 billion) gain on the deal, needs to write down any of that amount, or appeal Peck’s ruling. Reflected in the gain was some money held in margin accounts, according to deposition notes and court testimony of Gary Romain, the bank’s accounting specialist for the acquisition.

“An appeal will probably not have much chance of success,” said George Kuney, a professor at the University of Tennessee College of Law in Knoxville who teaches bankruptcy and contract law. “Bankruptcy Judge Peck’s opinion is thorough and well written.”

Barclays was the sole bidder for defunct Lehman’s North American business in the 2008 credit crisis, taking 10,000 employees and giving 72,000 brokerage customers access to $40 billion in frozen assets.

Preparing to challenge Giddens’s interpretation of Peck’s ruling, Barclays asked the trustee to document whether margin assets are worth $4.8 billion or some other sum of money, said the person familiar with the case.

Treasury Debt
The bank believes that about $1.5 billion probably isn’t in cash, and so belongs to Barclays, the person said. The margin accounts included U.S. Treasury debt with maturities of more than three months, which aren’t considered cash equivalents, the person said. Barclays also is claiming part of the margin backing Lehman’s trading operations, which it took over.

Michael O’Looney, a Barclays spokesman, declined to comment. Jake Sargent, a spokesman for the trustee, didn’t immediately respond to an e-mail seeking comment.

Last year’s bankruptcy trial had more than 30 days of testimony. It pitted Barclays, which gave Chief Executive Officer Robert Diamond as much as 10.1 million pounds ($16.5 million) in salary, bonuses and stock last year, against Lehman, whose creditors will get an average of 18.6 cents on the dollar, without lawsuit proceeds, the bankrupt company has said.

In the same trial, the U.K. bank wrestled for key accounts with the Lehman brokerage trustee.

Besides the clearance box assets, Peck said Barclays might get securities in the reserve accounts later if there isn’t a deficit for customers. The bank must forgo margin assets, he ruled. He directed Barclays, Lehman and the brokerage trustee to write orders interpreting his ruling.

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

http://www.bloomberg.com/news/2011-04-12/...s-it-owes-or-is-owed.html  

NEW YORK, April 29 (Reuters) - Barclays Plc (BARC.L) is disputing a court order that lays out to which of Lehman Brothers Holdings Inc's (LEHMQ.PK) assets Barclays is entitled from its rushed 2008 purchase of the company's North American arm.

Taking issue with a bankruptcy judge's February ruling, Barclays said it should be allowed to keep between $1 billion and $6 billion to offset liabilities it inherited by acquiring Lehman's proprietary cash accounts.

Barclays made its argument in court papers late Thursday outlining how the judge's order, which concluded a 34-day trial between Barclays and Lehman trustee James Giddens, should be interpreted.

In his order, U.S. Bankruptcy Judge James Peck in Manhattan had said Barclays owed the trustee about $4 billion in cash margin assets that should not have been transferred. Barclays said in its court papers that the $4 billion it owes should be reduced, citing offsets based on liabilities it inherited.

The bankruptcy court trial centered on the negotiations leading up to the Barclays sale in the week following Lehman's frantic Chapter 11 filing in September 2008. Lehman sought unsuccessfully to invalidate the sale, saying Barclays left vital information out of the court record to attain a sweetheart deal.

Lehman, still in Chapter 11, has said it hopes to present a court-approved restructuring plan to creditors for a vote later this year. Its proposed plan faces opposition from groups of creditors who have submitted competing proposals.

The Lehman trustee, in charge of liquidating what is left of the company's brokerage, said in court papers that Barclays' claim for additional margin assets is based on an agreement between the parties that was never approved by the court.

The trustee is seeking to largely uphold the language of Peck's initial order.

"We are disappointed with the introduction of unnecessary complexities at this stage of the process," Giddens said in a statement. "We are hopeful that the final orders will remain consistent with the court's previous ruling."

Barclays and its attorneys declined to comment Friday.

Barclays also asked the court to increase an award of $870 million in damages for Lehman's failure to deliver so-called clearance box assets, which facilitate the clearance of securities trading.

The award should reflect the appreciation in value of the assets, Barclays said.

A hearing on the dispute is set for May 9.

http://www.reuters.com/article/2011/04/29/...ys-idUSN2913510820110429  

Hier mal nen interessanter Artikel, relativ frisch:
https://www.fis.dowjones.com/...plication=&r=wsjblog&s=djfdbr

Imho gibt es drei Interessengruppen mit je drei eigenen Inso-Plänen, woraus zum Jahresende einer entschieden werden muss vom Gericht.

- Plan der sog. 'subsidiary creditors':
including Goldman and Silver Point, have offered a plan that cuts the recovery for Lehman's senior bondholders to 16 cents on the dollar from the 21.4 cents on the dollar that bondholders are slated to receive under the Lehman's own plan. Those funds are instead diverted to creditors of subsidiaries such as Lehman Brothers Special Finance.

- Lehman Plan:
u. a. 21.4 auf den Dollar für bondholder

- Paulson gruppe:
24% recovery for senior unsecured creditors, including bondholders, at the _expense_ of subsidiary creditors. <- also 180° entegen der Interessen der debt aufkaufenden Großbanken.

Imho deshalb fällt der Kurs so star seit monaten, da die Großbanken durch großzügigen Aufkauf von Schulden ihre Position stärken ... zum nachteil von bondholdern, vllt sogar Aktionären, falls wirklich mal was übrig bleiben sollte (und die aktien _nicht_ ohnehin bei zustimmung eines Plan geshredderd werden!)

Grüße  

Judge Peck bestätigt, denn dieser hatte im März? eine Klage der Asiaten wegen Minibonds abgeschmettert.
(Letztendlich haben aber die dort ansässigen Handlanger-Banken, nicht aber lehman, diese Minibond-halter entschädigt)

Persönlich würd ich aber von dieser Entscheidung hinsichtlich der Reorg-Pläne nichts halten, wir wissen ja spätestens seit Vietnam, wie Asien-freundlich die Amis waren und sind...

Grüße  

Barclays Plc (BARC), which bought Lehman Brothers Holdings Inc.’s North American business, will get $1.1 billion in trading assets from the trustee liquidating the remnants of Lehman’s brokerage, the trustee’s lawyer said.

The assets were held in so-called clearance boxes to clear trades and should have been transferred to the London-based bank in September 2008, according to court papers.

U.S. Bankruptcy Judge James Peck declined to rule today at a Manhattan court hearing on a continuing dispute over so-called margin assets, saying the issue needed “some thought.” He said he would set a date for another hearing after completing his deliberations, which “shouldn’t take very long.”

Brokerage trustee James Giddens last week demanded $2.1 billion in margin assets from Barclays, plus interest at 9 percent. Peck said today that the demand for margin, or deposits held to back trades, was “consistent” with a February ruling he made ordering Barclays to pay or return any cash it had taken in the deal.

He made the comments after hearing arguments from Barclays’ lawyer David Boies and William Maguire, a lawyer for the brokerage trustee, who said negotiations over the dispute had reached “the end of the road.”

Barclays understood the order to exclude noncash margin, Boies told the judge. Of a total of about $4 billion in margin, $1.5 billion was securities maturing in more than three months, according to Barclays. About $640 million of noncash margin had maturities of longer than 15 years, Boies told the judge.

‘Never Presented’
“Why didn’t this come up at trial?” Peck asked Boies. “It was never presented to me that some of the margin was invested in long-term government securities.”

Boies said the bank believed “the basic argument” at the trial was over whether Barclays should pay cash and cash equivalents, as the judge had said it mustn’t take any cash in the deal.

Maguire said the trustee fought for the margin during the trial and maintained that Barclays wasn’t entitled to any government securities, whether they matured in months, “or in 90 years.”

Peck’s ruling followed a trial last year that involved a three-way fight, with lawyer Boies representing Barclays, the U.K.’s third-biggest bank. Barclays said it was owed $3 billion on the brokerage purchase, and the trustee demanded about $7 billion from Barclays. The New York-based Lehman parent company sought an alleged $11 billion “windfall” it said Barclays made on the purchase.

Paying Bonuses
Peck denied the Lehman parent’s claim and reduced the trustee’s right to assets. A ruling that failed to specify who owed what to whom left Barclays and the brokerage disputing as much as $3.5 billion in assets.

Lehman wrote a letter to the judge on April 29, saying it was claiming $500 million from Barclays for allegedly failing to pay all of the bonuses the U.K. bank agreed to when it bought the defunct investment firm’s business. Barclays has said it paid all the promised bonuses and other compensation.

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

http://www.bloomberg.com/news/2011-05-09/...g-lehman-s-brokerage.html  

We've been working our way through the final report of the National Commission on the Causes of the Financial and Economc Crisis in the United States (The Financial Crisis Inquiry Report), and came across this little gem.

On the evening of Tuesday, September 9th, 2008 (six days before Lehman was forced to file for bankruptcy), Treasury Chief of Staff Jim Wilkinsin is said to have emailed Michelle Davis, the assistant secretary for public affairs at Treasury: 'We need to talk....I just can't stomach us bailing out lehman....Will be horrible in the press, don't you think'. Turned out being pretty horrible to millions of people around the world, Jim, don't you think ?

In the meantime, The Financial Times reports that Barclays was won 'a small victory' in the US bankruptcy court, when a US judge confirmed that he had no objection to an agreement by Lehman's trustee to pay Barclays $1.1bn in respect of funds which were held for securities clearing. Around $2.2bn in assets remain in dispute between the two parties.

http://news.hereisthecity.com/2011/05/10/...hers-comment-of-the-week/  

Kannst du zur Abwechslung mal was auf deutsch Posten??? Du versaust hier den ganzen Thread...

 

irgendwie hofft man ja langsam darauf das der Spuk bald vorbei ist.Lieber heute als morgen  

Sehr cool, wo Jerri die ganzen Infos auftreibt. Noch cooler wäre allerdings jeweils eine kurze einschätzung zum jeweiligen post...

Hedge-fund manager John Paulson made $4 billion betting against subprime mortgages, the market that ultimately helped destroy Lehman Brothers Holdings Inc. Now, his fund is poised to make hundreds of millions picking through the investment bank's remains.

.Mr. Paulson's fund has been snatching up Lehman debt at steep discounts since the day the investment bank collapsed, betting prices would rise while panicked investors fled. Now, as Lehman's estate prepares to wind down, Mr. Paulson's fund could reap profits between $350 million and $726 million on the Lehman trades. Those figures are based on plans being considered in a federal bankruptcy court in New York and a Wall Street Journal analysis of investment disclosures related to the case.

Over two and a half years, Mr. Paulson's fund, Paulson & Co., purchased more than $7 billion worth of Lehman bonds in about 1,800 transactions. The average cost of those trades was just 13 cents on the dollar, according to the Journal's analysis. Some Paulson trades in the disclosures represent transfers of bonds from one of the firm's funds to another, slightly inflating the number of trades reported but not the overall average cost.

A little-known hedge fund, Owl Creek Asset Management, also bought Lehman debt right after its downfall, and it is poised to reap a profit of as much as $71.6 million, the Journal analysis shows. Owl Creek representatives didn't respond to requests for comment.

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.The court disclosures offer a rare window into the trading strategies of hedge funds such as Paulson, which is involved in a broad scuffle over the best way to wind down Lehman's estate. Paulson is following a classic distressed-debt-investor template. Such investors buy debt in troubled firms they think are undervalued, then often battle in bankruptcy court to earn the best possible gains.

Mr. Paulson is now immersed in a three-way fight over Lehman in bankruptcy court and is pushing for a recovery on the bonds he holds of roughly 25 cents on the dollar, higher than two other plans under consideration.

View Full Image
.Away from Wall Street, the outcome of the legal battle has ramifications for the municipalities, pension funds and manufacturers that invested in Lehman before it collapsed. These types of creditors face steep losses and make up much of the more than $350 billion in claims against the estate.

The California Public Employees' Retirement System and San Mateo County bought the same bonds Paulson owns, but paid face value for them in the years before Lehman failed. Both are aligned with Mr. Paulson's fund on its bankruptcy plan, which would give them a better shake than the other proposals. Even so, Calpers would lose $68 million under the Paulson plan, while San Mateo would lose about $115 million.

"This is taxpayer money," said San Mateo County Counsel John Beiers. The funds go toward county services such as police officers, firefighters and school districts, he said. Calpers's representatives declined to comment.

But every cent recovered on the bonds, which were issued by Lehman's parent holding company, will reduce recoveries for other creditors to Lehman's operating subsidiaries.

WSJ Archives

Trader Made Billions on Subprime 1/15/08
Trader Racks Up a Second Epic Gain 1/28/11
.That includes a Savannah, Ga., pension fund for dock workers that is still trying to recover more than $40,000 on foreign-exchange trades it executed with a Lehman subsidiary before the bankruptcy. A distressed-debt investor recently offered to buy the claim for 15 cents on the dollar, but the fund decided to hold out, said J. Wiley Ellis, a lawyer representing the pension fund.

"We don't have enough involved to participate in those [bankruptcy] proceedings," Mr. Ellis said. Instead, the fund is avidly watching from the sidelines to see which faction wins in court, he said.

Bond giant Pacific Investment Management Co., an Allianz SE unit, holds about $4.7 billion in Lehman debt but didn't disclose details of its trades in the filings the Journal analyzed. Pimco representatives declined to comment.

View Full Image

Bloomberg News

While markets sank into chaos, John Paulson was busy buying more than $251 million of Lehman's bonds at about 35 cents on the dollar. The bonds had been trading at about 80 cents in the days before Lehman sought Chapter 11 protection.
.Even amid recent calls for greater transparency on Wall Street and in markets, the trading disclosures could represent one of the last detailed looks at how hedge funds and others trade in and out of troubled companies' debt.

A judge ordered the Paulson-led group to reveal details of the trades, citing a longstanding bankruptcy rule. But that rule is set to change in December, meaning investors trading in and out of companies under bankruptcy protection will no longer have to reveal prices or dates of transactions, only their aggregate holdings.

The Lehman disclosures show Paulson moving with characteristic pluck, pouncing on Lehman bonds the day Lehman filed for bankruptcy protection, Sept. 15, 2008. While markets sank into chaos, Paulson was busy buying more than $251 million of the bank's bonds at about 35 cents on the dollar. The bonds had been trading at about 80 cents in the days before Lehman sought Chapter 11 protection.

Mr. Paulson's confidence stemmed from research done months before Lehman foundered, said a person familiar with the matter. After determining that subprime-mortgage borrowers would default en masse, the fund began analyzing the banks that had the most exposure. That homework allowed Mr. Paulson to quickly analyze Lehman's worth and make a call on when to start buying the bank's bonds, this person said.

Paulson kept buying in the ensuing months, paying 12 cents on the dollar in October after the government unveiled its $700 billion Troubled Asset Relief Program. The fund picked up more bonds for as little as eight cents on the dollar on Dec. 1, soon after American International Group Inc. received a government bailout.

By Jan. 5, 2009, the fund had bought bonds with a face value of more than $6 billion, representing 90% of its total investment. Paulson subsequently sold some of its position, and the firm now holds a $4 billion claim. If the Paulson-led plan wins in court, the hedge fund would make a profit of about $726 million on the bond trades, a 78% return, according to the Journal's analysis.

Creditors of Lehman's operating subsidiaries, led by Goldman Sachs Group Inc. and hedge-fund Silver Point Capital LP, have proposed an alternative plan that would only give bondholders 16 cents on the dollar. Even under that scenario, Mr. Paulson would earn a profit of about $350 million, or a 38% return, the analysis shows. The Paulson-led bondholders may ask these other creditors to reveal details of their trades.

Like Paulson, Owl Creek paid just 13 cents on the dollar for its bonds, on average, a far lower price than several other hedge funds that placed bets on the debt. If bondholders recover 25 cents on the dollar, Owl Creek would turn a nearly $72 million profit, a 94% return on its $76 million investment.

Note: To determine how investors have fared on their Lehman trades, the Journal analyzed a bankruptcy-court document that details how much debt a Paulson-led group purchased and sold, and the dates and prices of the transactions. The group includes a mix of hedge funds, municipalities and institutional investors.

When a member of the Paulson-led group sold debt, the Journal subtracted the proceeds from the amount paid for all the claims the investor had acquired. The Journal then subtracted that remaining exposure from the potential payout each investor might receive under Lehman's various wind-down plans to estimate potential profits.

http://online.wsj.com/article/...2748704681904576313220963273398.html  

WOODSIDE, Calif. (Dow Jones)--Tenaya Capital, the venture capital firm that spun off from bankrupt Lehman Brothers Holdings Inc. in 2009, is raising its first fund as an independent firm, according to people familiar with the situation.

The firm aims to raise $300 million for Tenaya Capital VI LP, these people said. The fund will make mid- to late-stage venture investments in technology companies.

Tenaya declined to comment on fund raising.

Lazard Freres & Co. is acting as placement agent for the fund. Proposed terms for the fund couldn't be learned.

In early 2009, the venture team spun off from Lehman Brothers as the bankrupt investment bank sought to offload assets to raise cash to pay creditors. The venture arm, known as Lehman Brothers Venture Partners, was renamed Tenaya Capital.

The team brought with it $750 million in assets to manage as well as stakes in 47 technology companies, VentureWire reported at the time. As part of the spinoff, secondary investor HarbourVest Partners took on Lehman's existing investment and unfunded commitments to the venture fund.

The predecessor fund, Lehman Brothers Venture Partners V LP, raised $365 million in 2007. Fund V is generating a 23% gross internal rate of return and the fourth fund is producing a gross IRR of 11%, people familiar with the matter said.

The firm has witnessed a few liquidity events since becoming independent, including last summer's initial public offering of Green Dot Corp. and the sale of chipmaker Wintegra Inc. to broadband semiconductor company PMC-Sierra Inc. Tenaya also holds small stakes in videogame rental service GameFly Inc. and travel company Kayak Software Corp., which are registered to go public.

Recent investments include the firm's participation in a $25 million Series D round for social network Spiceworks Inc. this year and Tenaya's backing of a second round of funding for Beijing-based group-buying website Lashou Inc. late last year.

Tenaya, which has offices in Woodside, Calif., near San Francisco, and Waltham, Mass., a Boston suburb, primarily makes investments in companies that are producing between $1 million and $5 million of revenue per quarter and avoids Series A investments.

The firm targets various technology sectors including software, consumer Internet, IT infrastructure, communications and electronics. It usually serves as the lead investor in financing rounds, with initial investments ranging between $5 million and $10 million. Follow-on financing brings the total investment to between $10 million and $15 million.

The team is made up of five managing directors: Tom Banahan, Ben Boyer, Stewart Gollmer, Brian Melton and Brian Paul. Dave Markland joined Tenaya earlier this year as chief financial officer. Banahan and Paul recently made Forbes' Midas List of the top technology investors for 2011.

http://online.wsj.com/article/BT-CO-20110510-711963.html  

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Reuters) - JPMorgan Chase & Co urged a bankruptcy court on Tuesday to throw out Lehman Brothers Holdings' claim demanding that it hand over $8.6 billion in cash taken as collateral in the weeks before Lehman imploded in September 2008.

Lawyers for JPMorgan denied that the bank had engaged in misconduct, and portrayed the lawsuit brought by the failed investment bank and its unsecured creditors as undeserved punishment for the bank's good deeds.

"Other creditors joined the run on the bank, unlike JPMorgan," Paul Vizcarrondo, a lawyer for the bank, argued before Judge James Peck in U.S. Bankruptcy Court in Manhattan.

Vizcarrondo, of law firm Wachtell, Lipton, Rosen & Katz, argued that JPMorgan had helped to mitigate the 2008 financial crisis by continuing to provide financial services to Lehman even after the fourth biggest U.S. investment bank filed for bankruptcy.

Lehman sued JPMorgan in May 2010, saying the second-largest U.S. bank illegally took billions of dollars of assets from Lehman ahead of its record bankruptcy.

JPMorgan was Lehman's main clearing bank, acting as a go-between in its dealings with other parties.

JPMorgan filed a countersuit, accusing Lehman of sticking it with piles of loans that might never be repaid.

The bank accuses Lehman of providing it with deficient collateral in the form of securities that Lehman's own employees wrote off as "goat poo" and "toxic waste."

Both parties agreed at the outset of Tuesday's arguments that they would not address a related proceeding to strike JPMorgan's counter-claims.

LIFE AND DEATH POWER

Peck was mostly silent during JPMorgan's nearly three hours of arguments. When Lehman got its turn, however, the judge questioned lawyer John Quinn on the company's argument that the $8.6 billion at issue is not protected by so-called "safe harbor" laws.

Such laws can shield some financial transactions from being included in the pool of assets divided among creditors when a company files for Chapter 11.

JPMorgan needed agreements ahead of clearing billions of dollars for Lehman, the judge said.

"That seems to be in the sweet spot of safe harbors," Peck told Quinn, of law firm Quinn Emanuel Urquhart & Sullivan. "How can you say it is not?"

Lehman argues that JPMorgan used "its life and death power" over the firm to unfairly extract Lehman's remaining cash piles after learning from meetings with government officials and other inside sources that Lehman was about to collapse.

JPMorgan asked for the collateral in August and September 2008 as part of an arrangement to continue acting as a clearing house for Lehman's valuable brokerage business, much of which was based on repurchase agreements, or "repos," that involve loans of securities for short periods.

JPMorgan argued to the judge that broad safe harbor laws for financial firms are vital to the national interest and showed slides from a report by the Federal Reserve aimed at supporting its position.

The case is: Lehman Brothers Holdings Inc et al v. JPMorgan Chase, U.S. Bankruptcy Court for the Southern District of New York, Adversary Proceeding No. 10-03266.

http://www.reuters.com/article/2011/05/10/...nnovationNews&rpc=43  

A steady stream of legal assignments related to the ongoing bankruptcy of now defunct investment bank Lehman Brothers has at least 12 firms reaping the rewards, including companies providing e-discovery services and contract attorneys.
Lawyers for the debtor have been busy in U.S. bankruptcy court in Manhattan, pressing JPMorgan Chase for dismissal of a suit over $70 billion the bank lent Lehman in the days before its collapse in September 2008. JPMorgan, represented by Wachtell, Lipton, Rosen & Katz, is asking the court to dismiss a Lehman claim seeking $8.6 billion in cash taken as collateral before Lehman slid into Chapter 11.
A year after Lehman and Barclays squared off in bankruptcy court over the sale of key assets following Lehman's bankruptcy filing three years ago, the two sides resumed their battle this month. The latest case centers on $2.1 billion being sought by the trustee for Lehman's former broker-dealer. On Monday, trustee James Giddens of Hughes Hubbard & Reed agreed to pay Barclays $1.1 billion in disputed assets connected to the British bank's $1.75 billion purchase of Lehman's North American business in 2008.
As previously reported by The Am Law Daily, Hughes Hubbard has received at least $108 million so far for the work of returning assets to former customers of Lehman's brokerage under the Securities Investor Protection Act. Giddens, the cochair of Hughes Hubbard's bankruptcy and corporate restructuring group, has turned to British firm Norton Rose for special counsel in the U.K.
Several other firms also continue to bulk up the billables with Lehman-related work.
According to the latest monthly operating report filed with the SEC, Lehman's main holding company spent nearly $32 million in March on outside professional advisers. Weil, Gotshal & Manges, serving as lead bankruptcy counsel to Lehman, saw its total haul in the case increase to almost $286 million after another $6.1 million in fees and expenses for its work in March.
Other top legal billers include: conflicts counsel Curtis, Mallet-Prevost, Colt & Mosle at $1.3 million (bringing the firm's tab to date to $26.5 million); and Jones Day, as special Asia and domestic litigation counsel, billed for $982,000 in March (its bankruptcy total comes to nearly $49 million). Gibson, Dunn & Crutcher, Dechert, and New York's Windels Marx Lane & Mittendorf billed for $232,000, $165,000, and $224,000, respectively, for real estate work in March.
Milbank, Tweed, Hadley & McCloy billed for more than $3.3 million in March for its work representing Lehman's unsecured creditors' committee, bringing the firm's total to $93.2 million. Quinn Emanuel Urquhart & Sullivan, conflicts counsel to creditors, billed for nearly $1.9 million in March to increase the tab for its work to $17.1 million.
Discover Ready, an e-discovery provider, received $867,000 in March to bring its total in Lehman's 30-month bankruptcy case to $12.8 million. Hudson Global Resources billed the debtor for $524,000 in March for the services of contract attorneys, bringing the company's tab to nearly $9.6 million.
Lehman's monthly operating reports do not include expenditures for its unit in the U.K., which is now under the administration of global accounting firm PricewaterhouseCoopers as required by British bankruptcy laws. According to a copy of an audit report released by PwC last month, "over 30 law firms are retained in various capacities and in various geographies" by Lehman. Those firms employed overseas on Lehman's behalf, including Magic Circle shop Linklaters, have received a total of $242 million through March 14.
The Lehman case is the largest bankruptcy in U.S. history.

http://amlawdaily.typepad.com/amlawdaily/2011/05/lehman-fees.html  

Grüße  

hohes volumen in den letzten tagen aber es passiert einfach nix - was meint der olle teras?  

Lehman Brothers Holdings Inc. (LEHMQ) on Wednesday will ask the New York bankruptcy court to throw out a $450 million lawsuit filed by an affiliate of Magnetar Capital LLC that accused Lehman of moving funds from its reinsurance unit to other parts of the failed investment bank through a repurchase agreement.

Lehman has said that Magnetar's offshore insurance affiliate, Pulsar Re, is trying to "leapfrog" over other creditors in its bankruptcy case by trying to reclaim funds it had parked with Lehman's Bermuda reinsurance company from Lehman's holding company and its commercial paper unit.

Magnetar, however, says the repurchase deal swapped its cash for "delinquent commercial loans secured by stalled, incomplete and underfunded real estate developments," worth only about $100 million, according to the suit.

The hedge fund's reinsurance dealings with Lehman took place in 2008, when it alleges "Lehman's abuse of repurchase agreements ... to create the false appearance of financial health was rampant."

The Magnetar insurance affiliate said it fears its cash is in danger of being handed out to creditors in Lehman's Chapter 11 case.

The Evanston, Ill., hedge fund, founded in 2005 by Alec Litowitz, a former trader at Citadel Investment Group, was a major player in the market for mortgage-linked derivatives during the boom years.

On Wednesday, Capmark Financial Group Inc. will ask the Wilmington, Del., bankruptcy court to sign off on the sale of its stake in a $1 billion real-estate debt fund.

An affiliate of private equity firm Normandy Real Estate Partners won an April 29 auction for the company's stake in the Capmark Structured Real Estate Partners debt fund with a $12.7 million offer, beating out a $7.6 million stalking-horse bid from William Lindsay's real estate investment firm PCCP LLC.

PCCP is entitled to a breakup fee of 3% of the purchase price for serving as the lead bidder at the auction.

The real-estate fund was started in 2006 and invested in U.S. debt-related real estate assets, among them the troubled Xanadu retail development in New Jersey.

Capmark, once one of the nation's largest commercial real estate lenders before plummeting real-estate values ravaged its balance sheet, has been selling off assets since filing for bankruptcy in 2009.

On Thursday, TerreStar Networks Inc. will ask the Manhattan bankruptcy court to extend its exclusive control over its Chapter 11 case through Sept. 20 as it works to auction off its assets.

TerreStar recently won approval from the court to put its assets on the auction block after it failed to reach a deal with creditors on a restructuring plan. The company hasn't identified a lead bidder that would open the auction.

An auction is set for June 15, followed by a June 20 sale hearing. TerreStar's exclusive Chapter 11 control, however, is set to end on May 23.

In court papers, the company said it needs the extension to run a "robust sale process." An extension will prevent creditors from filing competing reorganization plans for the company.

TerreStar, which is trying to create the first satellite smartphone, has said the proposed auction is "the most value-maximizing alternative" after it failed to reach a deal with its creditors on a restructuring plan.

The Reston, Va., company filed for Chapter 11 protection in October with a plan that would have handed nearly all of its new equity to noteholders including EchoStar Corp. (SATS). Junior creditors, who were set to recover just pennies on the dollar, protested the deal.

TerreStar's publicly traded parent company, TerreStar Corp. (TSTRQ), filed for Chapter 11 protection earlier this year.


http://online.wsj.com/article/BT-CO-20110513-713572.html  

im plus geschlossen bei sehr hohem volumen!!!

ICH FREU MICH AUF DIE NÄCHSTEN TAGE ................hier zuckt es wieder.  

hohes Volume????  

das stimmt schon! volumen am donnerstag knapp 2 Mio und gestern knapp 1 Mio.
In den vergangenen Wochen lagen deutlich darunter. Ob das was heißen mag ist
aber eine andere Frage!  

alles unter 30mio tagesvolumen ist nicht der rede wert! mMn zumindest!

grüße  

dachte,es könnte ein stein ins rollen kommen...........................................................­.leider nix draus geworden !  

JPM abweist, was deren Ansicht über Lehmq Mrd.-Klage angeht etcpp
- dazwischen könnte immer noch die Streitigkeit mit Barclays wg Ex-Brokerage (über 2 Mrd Assets in der Schwebe) für Kurssprünge gut sein...

Grüße  

Lehman Brothers Holdings Inc. derivatives unit is seeking bankruptcy-court approval to sell its municipal portfolio linked to derivatives insured by Warren Buffett’s Berkshire Hathaway Inc. Read the Daily Bankruptcy Review story here.

Merit Group Inc., whose subsidiaries distribute paint and paint-related products, filed for Chapter 11 bankruptcy protection to address a pressing liquidity squeeze. Read the Daily Bankruptcy Review Small Cap story here.

(The Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial to DBR, click here. For DBR SC click here.)

Chrysler Group LLC, seeking to repay government loans used to bail it out two years ago, increased the bond portion of a $7 billion refinancing plan Tuesday after investors balked at the largest loan offer since the financial crisis, Dow Jones Newswires reports.

The Wall Street Journal looks at how Blackstone Group has used its clout and balance sheet to restructure debt on pricey hotel investments made during the real-estate boom.



Broadway Partners’ Scott Lawlor, who lost Boston’s tallest skyscraper to foreclosure, looks to rebound in a partnership with Winthrop Realty, reports WSJ.

The world-renowned Philadelphia Orchestra is in a financial crisis and bankruptcy is the best chance to save it, writes Chairman Richard B. Worley in an op-ed in the Philadelphia Inquirer.

Auto-parts supplier Delphi Automotive has selected Goldman Sachs Group and J.P. Morgan Chase & Co. to lead its


http://blogs.wsj.com/bankruptcy/2011/05/18/...o/?mod=google_news_blog