Lehman Australia Files for Bankruptcy Protection in U.S.
Lehman Brothers Holdings Inc. (LEHMQ)’s Australian unit sought bankruptcy protection from creditors in the U.S.
The company, based in Sydney, listed assets of more than $100 million against debt of more than $500 million in Chapter 15 documents filed Jan. 6 in U.S. Bankruptcy Court in Manhattan.
Lehman was the fourth-largest investment bank before filing for the biggest bankruptcy in U.S. history on Sept. 15, 2008. Grange Securities became Lehman Brothers Australia, which appointed a voluntary administrator under the country’s bankruptcy laws on Sept. 26, 2008.
The company is embarking on a $65 billion liquidation plan after more than three years in bankruptcy court, with cash of more than $20 billion raised so far.
Chapter 15 protects foreign companies from U.S. lawsuits and creditor claims while a company reorganizes abroad. The unit is asking the U.S. Bankruptcy Court to recognize the proceeding commenced in Australia as a “foreign main proceeding,” according to court papers.
The case is: In re Lehman Brothers Australia Ltd, 12-10063, U.S. Bankruptcy Court, Southern District of New York (Manhattan). the 2008 credit crisis. The main bankruptcy 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: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.
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