Lehman Cuts Derivatives Claims Figure

by San Antonio Attorney

Of the $22 billion derivative claims against Lehman Brothers Holdings Inc, the company said that the proper amount may only be around $10 billion.

The representatives of the company claim that the amount is an overstated estimate. If the figure is computed in accordance with the new framework, it should only be around $10 billion.

On its website Wednesday, former global financial services company said that the actual and accurate figures of derivatives claims are still uncertain.

Daniel Ehrmann, Alvarez & Marsal managing director and head of international operations and co-head of derivatives, said that the step is a big advancement towards resolving the derivative claims.

He is hoping that those who contributed to the framework of the derivatives claims settlement proposal are going to settle and wait a little for the announcement of the development in the near future.

The company can only make settlements with its lenders soon after its bankruptcy exit plan is approved by the court, which is scheduled for a hearing this June.

Lehman Brothers Holding Inc has filed for bankruptcy in September 2008 and it has been considered as the United State’s largest bankruptcy of all time.

The assets of the company are worth $639 billion, and about 30 financial institutions have been trying to recover the losses they incurred when the company filed for bankruptcy.

In Lehman’s repayment plan, about $60 billion will be paid to the creditors. $20 billion of the amount will go to the Paulson bondholder group which is 21.4 percent of its losses.

However, the bondholder group wants to get 24.5 percent repayment and 25.7 for the derivatives claims.

Paulson & Co, leader of the bondholder group, says that the bankruptcy exit plan is partial to the Lehman’s derivatives business lenders such as Morgan Stanley and Goldman Sachs.

More news can be found in the San Antonio Bankruptcy Section.

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