The Chapter 11 bankruptcy of Lehman Brothers might be over soon. Lehman Brothers proposed a reorganization plan that has the support of creditors who hold more than $160 billion in claims. According to a recent bankruptcy court filing, the company has finally locked up nine major settlement agreements that makes them believe they see light at the end of the tunnel to end the Chapter 11 bankruptcy of the once number four investment banks on Wall Street.
The lead bankruptcy attorney for Lehman, Lori Fife, recently said in an interview, “We hope it will get confirmed by the end of the year, and we hope to make distributions early next year.” Ms. Fife is a partner at the Weil Gotschal and Manges and has been the lead bankruptcy attorney in one of the largest bankruptcy filings ever.
Included in the latest settlements are the affiliate groups such as Lehman Brothers International, Deutsche Bundesbank and 56 British affiliates. All the creditors will have until November 4, 2011 to decide on the proposed plan. US Bankruptcy Judge James Peck will consider the approval of the plan on December 6 when the bankruptcy hearing begins.
According to the proposed bankruptcy plan, approximately $65 billion will be paid to creditors that are holding an estimated $320 billion of claims. The liquidation of Lehman Brothers should continue on for at least a few years after the payouts begin. Hopefully, the country will be able to put this bankruptcy filing behind us.