Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
We welcome comments via posts to this site. Please send inquiries via email to firstname.lastname@example.org.
Thursday, November 1, 2012
Lehman, Affiliates Had $14.3 Billion in Restricted Cash
By Linda Sandler - Oct 31, 2012 9:52 AM ET
Defunct Lehman Brothers Holdings Inc. and its affiliates had $14.3 billion in restricted cash on Sept. 30, including $10.9 billion of reserves for claims, according to a federal court filing inManhattan.
Free cash and investments totaled almost $11 billion. The claim reserves include $5.8 billion held for disputed amounts, Lehman said. The former investment bank plans two payments to creditors every year. The last payment was Oct. 1.
Lehman, which four years after filing the biggest U.S. bankruptcy continues to sell assets to pay creditors, made a first payment of $22.5 billion in April and a second installment of $10.2 billion this month.
Overseen by a new board since leaving bankruptcy in March, the defunct New York-based firm plans a third distribution around March 30. Lehman has said it intends to raise $53 billion through 2016 or so, to pay an average of 18 cents on the dollar on final claims of $300 billion.
The company filed for bankruptcy in September 2008 listing debt of $613 billion.