Pursuits
Lehman, Summit, OTB, Townsends, Vitro: Bankruptcy
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Lehman Brothers Holdings Inc. filed a revised Chapter 11 plan and explanatory disclosure statement before midnight last night. The documents, including charts and exhibits, exceed 450 pages. The new plan is supported by the official creditors’ committee, Lehman said in a statement today.
The new plan revises the distribution formula promulgated with the original plan in March. In substance, it offers a compromise with creditors urging substantive consolidation of all 23 of the Lehman entities in Chapter 11. A rival plan filed by a group including Paulson & Co. would substantively consolidate by throwing all assets and debt into one pot, in the process not recognizing intercompany claims or the validity of claims based on guarantees.