NEW YORK Feb 3 Bankrupt financial company
Lehman Brothers Holdings Inc LEHMQ.PK has reached an
agreement with its German affiliate Lehman Brothers Bankhaus
that will allow $6.6 billion of the German bank's claims
against the parent company.
Bankhaus, Lehman's second-largest foreign affiliate, said
in a statement on Wednesday that it has also decided to support
the revised plan of reorganization filed by Lehman Brothers
Holdings last week.
Settling intercompany claims has been one of the most
complex parts of Lehman's bankruptcy because of the large
number of transactions between the parent company and its
The settlement must still be approved by German and U.S.
"This agreement is a milestone in the resolution of the
Lehman proceedings and is in line with our overall approach to
favor compromises with affiliates and avoid lengthy and costly
litigation," Lehman's chief executive, Bryan Marsal, said in a
Lehman last week proposed a new plan for dividing up
billions of dollars among its creditors and offered a bigger
payment to bondholders, provided they support the plan.
The plan, key to Lehman's exit from the largest bankruptcy
in U.S. history, came after an earlier version filed in April
met strong opposition from hedge fund Paulson & Co, the
California Public Employees Retirement System and other
bondholders. For details click on [ID:nN2596652].
(Reporting by Dena Aubin, editing by Matthew Lewis)