Lehman debtors request plan extension to resolve intercompany claims

By Caroline Salls

Pittsburgh, Jan. 26 - Lehman Brothers Holdings Inc.'s Merit and Somerset debtors are seeking an extension to their exclusive periods for filing and soliciting votes on a plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The debtors include Merit, LLC, LB Somerset LLC and LB Preferred Somerset LLC.

The debtors want to extend the exclusive filing period to June 15 from Feb. 15 and the solicitation period to Aug. 15, 2011 from April 15.

According to the motion, Merit and the Somerset debtors still need to evaluate and resolve many intercompany claim issues.

"The filing of competing individual plans would be disruptive not only to the Chapter 11 cases of Merit and the Somerset debtors, but to the plan process in general and the other debtors' efforts to achieve a consensus in support of the plan," the motion said.

A hearing is scheduled for Feb. 16.

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

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