Lehman Allowed to Sell New York Building for $160 Million

Lehman Brothers Holdings Inc. (LEHMQ) won a bankruptcy judge’s approval to sell a building at 1107 Broadway in Manhattan to L&L Holding Co. for about $160 million.

U.S. Bankruptcy Judge James Peck said today he “endorsed” the decision by Lehman and its creditors committee to “monetize an asset.” Hedge fund Paulson & Co., a Lehman creditor, opposed the sale.

Bryan Marsal, the co-founder of restructuring firm Alvarez & Marsal LLC who is running Lehman, aims to raise $61 billion by selling the defunct company’s assets to pay $322 billion in claims. Creditors would get 18.6 cents on the dollar, on average.

Once the world’s fourth-biggest investment bank, Lehman is fighting over control of its liquidation plan with a group of bondholders including Paulson and a rival group of derivatives creditors that includes Goldman Sachs Group Inc. (GS) and Morgan Stanley. Lehman filed for bankruptcy on Sept. 15, 2008, with assets of $639 billion.

Closely held L&L, founded in 2000, acquires and develops Manhattan office buildings, according to its website. L&L Chairman David W. Levinson is the former vice chairman of CB Richard Ellis Group Inc. (CBG)

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.

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