* Says sale afforded Barclays $11 billion "windfall"
* Judge ruled sale was "imperfect," but not unfair
NEW YORK, July 29 Lehman Brothers Holdings Inc
LEHMQ.PK will appeal a court order upholding the rushed sale
of its North American business to Barclays PLC (BARC.L) nearly
three years ago, a deal Lehman said afforded Barclays an $11
In court papers filed late Thursday in U.S. Bankruptcy
Court in Manhattan, Lehman said it will appeal to Manhattan
federal court the February ruling from Judge James Peck, who
presides over Lehman's bankruptcy.
Lehman was expected to appeal the matter, aspects of which
have already been appealed by Barclays and by the trustee
liquidating Lehman's brokerage.
Lehman's creditors' committee also filed an appeal notice
Thursday, saying it would seek review of a related order
rejecting the committee's objections to the Barclays deal.
A Lehman spokeswoman declined to comment. A Barclays
spokeswoman said the company did not have a statement.
Lehman said Barclays got a sweetheart deal in acquiring its
U.S. investment banking and brokerage operations in the days
following its filing of the biggest bankruptcy in U.S. history.
It said Barclays failed to make key disclosures in the $1.85
billion deal, resulting in a windfall of about $11 billion.
Peck called the sale process "imperfect," but said any
disclosure lapses were not serious enough to affect the
fairness or outcome of the sale.
James Giddens, the bankruptcy trustee for Lehman's
brokerage, a week ago appealed a separate aspect of Peck's
ruling entitling Barclays to $1.1 billion in money held to
facilitate the clearance of securities trading.
A week before that, Barclays appealed still another element
of the ruling handing the trustee $4 billion in so-called
margin assets, collateral Lehman posted to cover outstanding
Lehman declared bankruptcy on Sept. 15, 2008, listing $639
billion in assets, six times more than any other bankrupt U.S.
company. The filing was a major factor in the financial crisis.
It is scheduled to ask Peck on Aug. 30 for authority to
hold a creditor vote on a roughly $65 billion payout plan to
The case is In re Lehman Brothers Holdings Inc, U.S.
Bankruptcy Court, Southern District of New York, No. 08-13555.
(Reporting by Nick Brown. Editing by Robert MacMillan)