Lehman seeks approval of $6.25 million sale of undeveloped land

By Caroline Salls

Pittsburgh, Oct. 28 - Lehman Brothers Holdings, Inc. requested court approval of the proposed $6.25 million sale of 50 acres of undeveloped land in Hamilton Township, N.J., to Engel Group LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, the property has been subdivided into 125 lots, mostly intended to be used for single-family homes.

Lehman said it foreclosed on the land in connection with a bank loan default.

Engel has made a $550,000 down payment toward the purchase price.

The sale will be completed in two phases, with phase one to include 63 properties and phase two to include 62 properties.

The phase one sale is required to close by Nov. 20, and the phase two sale is expected to close by Sept. 1, 2010, unless the buyer exercises an option to extend the closing date to March 1, 2011.

A hearing is scheduled for Nov. 18.

New York-based Lehman Brothers Holdings, the fourth-largest U.S. investment bank, filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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