Disclosure Proposal Could Reveal The Losers and Winners In Lehman

by San Antonio Attorney

The bankruptcy of Lehman Brothers was a horrible setback for a number of note holders who suddenly lost their whole account, while seasoned investors like John Paulson, who is a hedge fund billionaire, could make a lot of profit.

At this point, there is still very little information about the outcomes for those who have invested in the Lehman debt, those who lost all their money, and those who could have gained profit on bonds but withdrew their account following the failure of the bank.

However, things could change.

The bankruptcy court judge who oversees the case of Lehman is taking into consideration a proposal of a bondholders’ group that the other investors of Lehman debt should disclose the details of their claims. The proposal came about when the group of bondholders led by Paulson & Co. was asked by the judge to provide details of their $20 billion claims. Goldman Sachs Group Inc, which is also a Lehman claim holder, would be included in the proposal. A hearing about the proposal is scheduled on June 15.

The enforcement could emphasize the similarity and difference of Goldman Sachs Group Inc.  and the group of bondholders led by Paulson. The two groups have been trying to influence the outcome of the Lehman repayment plan which is worth over $60 billion.

The group that has revealed how much Lehman they hold and the amount they paid for it includes Paulson and Calpers. The other rival group is comprised of Goldman and Silver Point Capital.

The hearing scheduled next week is a crucial event for Lehman which has been attempting to move the two groups into combining their rivaling plans for repaying creditors with Lehman’s own proposal.

The judge is scheduled to consider the repayment plans on June 28.

–  Repayment plan may be the answer if you need more time to pay off your debts. Ask a San Antonio bankruptcy attorney about Chapter 13 bankruptcy.

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