Hearing On The Disclosure of Lehman Claims Proposal Is Postponed

by San Antonio Attorney

The hearing on Lehman Brothers’ bondholders’ proposal regarding claims disclosure was postponed in order drive the creditors of the failed investment bank to reveal information about their claims.

According to court papers filed on Monday, the bondholders, a random group which is led by Paulson & Co. hedge fund, said that the meeting is going to be rescheduled on July 20.

The postponement would give the group more time to address the objections of the banks, which include Deutsche Bank AG, Morgan Stanley, and Goldman Sachs Group Inc, said the group of bondholders.

Goldman has not started talks with the group of bondholders to resolve the matter, according to its attorney.

The banks that have filed objections are part of the group that proposed to distribute roughly Lehman estate’s $60 billion value to repay creditors. The bondholders group, however, is proposing to give lesser repayments for the banks.

The banks filed their objections on Friday saying that the disclosure proposal would reveal confidential information about their claims and that it is not required by the bankruptcy rules.

In April, Judge James Peck ordered the bondholders to provide details about their claims which are about $20 billion. According to the Wall Street Journal, Paulson’s fund would likely generate up to $726 million in profits out of the Lehman’s bankruptcy.

According to the group of bondholders, the disclosure of information about the claims should be ordered to other parties as well. In May, the bondholders filed a proposal saying that all of those who are trying to control the repayment plan of Lehman should disclose the details of their claims. The proposal has raised oppositions from the other parties, which says that this was created to discourage the creditors from trying to give a say on the repayment plan. There are over 15 parties that have opposed to the proposal of bondholders.

Bankruptcy cases can become very complex as with the Lehman Brothers.  Seek help for a San Antonio bankruptcy from a quality attorney.

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