Bankruptcy

Lehman Sale Details Exposed, it had 1.2 billion in losses?

By mcbride

The Examiner appointed by the bankruptcy court overseeing the liquidation of Lehman Brothers has obtained permission from the court to open the records regarding the sale of Lehman?s assets.  Among other things, it reveals that Lehman had a loss in excess of 1.2 billion dollars after the sale.  ?It is the first and only time the CME Group [CME  320.03    0.56  (+0.18%)   ] has conducted a forced liquidation of a member firm’s positions, and left Lehman creditors with little to show for the valuable contracts.  The revelations come in newly unsealed passages of a report filed earlier this year by court-appointed bankruptcy examiner Anton Valukas, seeking to identify potential claims for Lehman’s creditors. The CME Group operates the Chicago Board of Trade, the Chicago Mercantile Exchange and the New York Mercantile Exchange. ??The bulk sale process … resulted in a substantial loss to (Lehman) exceeding $1.2 billion over the close-of-business liabilities associated with the positions,? Valukas writes. The CME still holds about $150 million in Lehman margin deposits, the report notes.  While Lehman creditors could try to sue the CME over the fire sale, Valukas concludes they probably would not succeed because the exchange’s role as a self-regulatory organization gives it ?absolute immunity.?”   Here is a link to the complete article which also has links to the Examiner?s full report: http://www.cnbc.com/id/36507485

Michael

Full post as published by Texas Lawyer Blog on April 15, 2010 (boomark / email).