In documents filed today in the U.S. Bankruptcy Court for the Southern District of New York, Lehman Brothers Holdings Inc. and its affiliated debtors reported overwhelming support among every class of creditors eligible to vote for their Third Amended Joint Chapter 11 Plan. In total, the Plan and related settlements are supported by 95% of creditors in number and 98% of creditors in amount of those creditors who have voted. Every single class voted to accept the Plan. A confirmation hearing is scheduled to begin on December 6, 2011 before Judge James M. Peck.
The Plan is supported by the Creditors' Committee; members of the ad hoc group of senior bondholders; virtually all of the proponents of the non-consolidation chapter 11 plan; numerous holders of notes issued by Lehman Brothers Treasury Co. B.V., who asserted substantial guarantee claims against LBHI; eight foreign administrators managing 87 foreign affiliates; and most other significant creditors.
In addition, Lehman said it has resolved the majority of the Plan objections and informal comments through good-faith negotiations and the addition of certain non-material amendments of the Plan.
Bryan Marsal, LBHI's Chief Executive Officer, said: "It has taken Herculean effort by many people to reach this point. The overwhelming support the Plan has received demonstrates that, while reaching a mutual agreement among these disparate parties was complex and challenging, it was worth the effort and was clearly the right path to take."
Lori Fife, one of Lehman's lead bankruptcy attorneys, said: "To approach confirmation with virtually unanimous support of creditors who asserted claims in the amount of $450 billion is unprecedented. The Global Settlements should avoid contentious litigation and allow for accelerated distributions to creditors."
The Lehman bankruptcy is the largest and most complex in history. Before the bankruptcy, Lehman Brothers had assets of $639 billion on its balance sheet and operated as a truly global firm with over 7,000 legal entities in more than 40 countries. Lehman's insolvency has resulted in over 75 separate and distinct bankruptcy proceedings, with the non-United States proceedings managed by a number of court appointed administrators, liquidators, trustees, receivers, and like office holders.
LBHI and its affiliated chapter 11 debtors, through their restructuring advisers at Alvarez & Marsal and their attorneys at Weil, Gotshal & Manges LLP, filed the Third Amended Joint Chapter 11 Plan and Disclosure Statement with the United States Bankruptcy Court for the Southern District of New York. These filings can be found at www.lehman-docket.com in the key documents section.
Contacts:
Lehman Brothers Holdings Inc.
Kimberly Macleod, 646-285-9215
kmacleod@lehmanholdings.com
or
Linden
Alschuler Kaplan Public Relations
Steven Alschuler, 212-575-4545
salschuler@lakpr.com