Lehman Brothers wants to give out assets directly to creditors



image The administrator for Lehman Brothers Holdings Inc plans to seek permission to remove the claims against the bank from British courts and give out assets directly to creditors, the Wall Street Journal said, citing a joint administrator for the collapsed investment bank.

According to the paper, Steven Pearson, a partner at PricewaterhouseCoopers and joint administrator for Lehman’s operations in London, said he hoped to gain the support of "90 percent" of creditors, which would reduce the risk of non-participating creditors filing claims later against those who do participate.

Under the proposal, expected to be announced later on Monday, creditors who agree in writing will be bound to the plan, the paper said, adding that such a move would allow the administrator to set a time-frame for the release of the assets.

Source: Reuters

Source http://www.reuters.com/article/businessNews/idUSTRE5940IS20091005?feedType=RSS&feedName=businessNews

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