News / Law
Lehman exits bankruptcy, begins to repay creditors
The largest bankruptcy in American history is finally over as Lehman’s Holdings Inc. exits Chapter 11bankruptcy protection after 3 ½ years and drafts plans to pay off creditors.
Lehman’s announced Tuesday that they have officially emerged from Chapter 11 bankruptcy and will begin to pay off creditors April 17th. The company has $10 billion to begin distributing but will still be involved in the process for years to come. The creditors awaiting payment include hedge-fund managers Paulson & Co. and Elliot Management, Goldman Sachs Group and Silver Point Capital, according to The Wall Street Journal.
Since a judge approved their late last year, Lehman has been in negotiations with creditors such as the Internal Revenue, Fannie Mae, and insolvency administrators of more than 80 Lehman affiliates over disputed claims.
A second distribution to creditors is slated for September 30th, while Lehman continues to liquidate assets. A seven-member board will continue to liquidate their assets.
As the country’s largest investment bank unraveling their financial problems has been a challenge for bankruptcy attorneys. Mot bankruptcies are not as complicated as Lehman.
Individuals and businesses that have an insolvency problem should meet with a bankruptcy attorney to outline the various structures and how their debts can be reduced and even eliminated. A bankruptcy lawyer is the person best qualified to give advice for the troubled business. With their help a company or individual will be able to have a fresh financial start.
