Wednesday, October 1, 2008

Lehman Bankruptcy Filing

Creditors in Lehman Brothers Holdings Inc.'s bankruptcy case, the biggest ever, urged a judge to reject a loan for the collapsed bank, arguing that proceeds from asset sales are enough to fund its day-to-day operations.

U.S. Bankruptcy Judge James Peck in Manhattan gave interim approval for New York-based Lehman to borrow an initial $200 million from Barclays Plc on Sept. 17. Peck had said he would hold a hearing on whether to approve an additional $250 million for the debtor-in-possession loan, which was tied to an agreement by London-based Barclays to purchase most of Lehman's North American business

Now that Barclays, the U.K.'s third-biggest bank, has completed its purchase, Lehman has access to proceeds of more than $1 billion, creditors said in court papers filed Sept. 29.

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