Goldman And Creditors Object On Lehman Claims Disclosure

by San Antonio Attorney

Goldman Sachs Group Inc along with other creditors competing for control over the bankruptcy of Lehman Brothers Holdings Inc are working together to prevent disclosing details of their claims against the former investment bank.

Goldman, Deutsche Bank AG, and Morgan Stanley said that Lehman bondholders’ proposal would go far beyond the requirements of bankruptcy rules.

The banks are among those that suggested the plan to distribute approximately $60 billion of the Lehman estate to repay creditors of the failed investment bank. The bondholders, a random group headed by Paulson & Co hedge fund, have submitted a contending plan that is going to generate lesser repayments for the banks.

Judge James Peck has told the bondholders of Lehman in April to share details of its claims which is about $20 billion, including how much were paid for buying those claims.

The bondholders proposed that others who are trying to control the repayment plan should also do the same. The other creditors objected immediately. There are 15 parties that have filed objections to the disclosure proposal.

The recent objections may turn out to be crucial on the dispute since the Goldman party is an immediate rival to the bondholders in attempting to influence Lehman’s reorganization.

The group has asserted that its members are neither affiliated nor have the same attorneys, so its group cannot have a committee status based on the rules of disclosure.

The bondholders argued that if, however, the disclosure rules exclude the banks various areas of the bankruptcy code should also be excluded. For instance, a legal provision that gives court judges extensive authority to give orders has to be interpreted in a liberal way to allow Peck to mandate disclosures of claims.

The Goldman party said that disclosure is unwarranted and would only dissuade creditors from giving a say in Lehman’s repayment plan.

The arguments are going to be considered by Judge Peck at a hearing on June 15.

A dispute similar to Goldman Sachs Group and the bondholders’ group dispute can delay a completion of a bankruptcy.  A San Antonio bankruptcy can help you become debt free.  

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