Lehman Unit Trustees in Netherlands Object to Revised U.S. Plan
Lehman Brothers Treasury Co. BV’s bankruptcy trustees objected to a U.S. revised plan filed by Lehman Brothers Holdings Inc. (LEHMQ), saying it should recognize an intercompany claim as senior debt.
“The Lehman Brothers Treasury trustees advised Lehman Brothers Holdings Inc. that they object to the January plan’s failure to recognize the seniority of Lehman Brothers Treasury’s intercompany claims,” Rutger J. Schimmelpenninck and Frederic Verhoeven, lawyers at Amsterdam-based Houthoff Buruma, wrote in their eighth report on the Lehman bankruptcy. The trustees said they are discussing better treatment of the claim with Lehman Brothers Holdings and “certain key noteholder groups.”
The Lehman Brothers Treasury unit helped finance the business activities of affiliates of New York-based Lehman, the securities firm that filed for bankruptcy in 2008, by selling financial instruments including structured notes, the trustees said. The Lehman holding company owed $33.2 billion to Lehman Brothers Treasury as of Sept. 12, 2008, they said.
While the January plan “does not recognize the intercompany claim’s status as senior debt,” it “seems to have acknowledged the senior status of certain other claims, which was not the case in its previous plan,” the lawyers said in today’s filing in Amsterdam district court.
The balance of the unit’s estate accounts was 5.81 million euros ($8.61 million) at the end of March, the trustees said.
To contact the reporter on this story: Jurjen van de Pol in Amsterdam at jvandepol@bloomberg.net.
To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net.
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