Bryan Marsal, who has run Lehman Brothers Holdings Inc. since it filed the biggest bankruptcy in U.S. history in 2008, resigned as chief executive officer and was replaced by John Suckow, the president.
Marsal, co-founder of restructuring firm Alvarez & Marsal Inc., has billed Lehman hourly for the firm’s work on liquidating Lehman, charging $512 million in fees since 2008. He will continue in the role of senior adviser to the parent company, Lehman said in a regulatory filing today.
Lehman, which has spent almost $1.6 billion on fees to managers and advisers, will make its first payment to creditors on April 17.
Lehman’s bankruptcy became America’s most costly in April 2010, when it surpassed the $757 million cost of Enron Corp.’s three-year liquidation, according to data assembled by bankruptcy professor Lynn LoPucki at the University of California, Los Angeles. The failed energy trader’s investors were paid 53 cents on the dollar, while Lehman’s $65 billion liquidation plan would give the average creditor less than 18 cents, according to court documents.
Lehman’s creditors range from Goldman Sachs Group Inc. and hedge funds to the New York Giants and Abu Dhabi Investment Authority, as well as individuals who hold Lehman bonds. Once the world’s fourth-biggest investment bank, Lehman filed for bankruptcy with assets of $639 billion.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).