Lehman requests approval of settlements with non-debtor affiliates

By Lisa Kerner

Charlotte, N.C., Feb. 29 - Lehman Brothers Holdings Inc. and its affiliated debtors including Lehman Commercial Paper Inc. and Lehman Brothers Special Financing Inc. asked the court to approve a Feb. 16 settlement agreement with two of their non-debtor affiliates, Lehman ALI, Inc. and Appalachian Asset Management Corp., according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The agreement would fully and finally resolve all asserted claims - with some specific exceptions - between the Lehman US Parties and Lehman Bermuda Parties related to two prepetition agreements: a master repurchase agreement dated July 9, 1999 and a net worth maintenance agreement dated Oct. 26, 2007.

A hearing is set for March 21.

Under the agreement, Appalachian Asset Management will be allowed to file a claim against Lehman Re in the Bermuda Proceeding for about $1.6 million.

New York-based Lehman Brothers Holdings 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.

© 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.