Lehman Brothers: cost to protect property investment is $25.1 million

By Lisa Kerner

Charlotte, N.C., March 23 - Lehman Brothers Holdings Inc. asked the court to approve additional investments totaling no more than $25.1 million in properties at 25 and 45 Broad Street in New York City, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing is set for April 13.

Lehman said to protect against asset loss and enhance the properties' value, it must complete construction at 25 Broad Street, including the demolition of a deteriorating portion of the existing structure, and cover the properties' operating expenses.

Also, Lehman said it needs to transfer related development rights to 45 Broad Street so the property can be developed in an economical and efficient manner.

Lehman provided financing for the properties in 2006 and 2007. In January 2009, Lehman began two separate actions for the foreclosure of the properties.

The foreclosures are expected to be completed in the fourth quarter, the filing said.

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 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.