Lehman bondholders may be owed $73 billion-claim

Source: Reuters

NEW YORK (Reuters) - The trustee of holders of bankrupt Lehman Brothers' (LEHMQ.PK) senior bonds said that the debt holders may be owed as much as $73 billion, after losing their investments when the bank filed for bankruptcy protection a year ago, according to court documents.
Wilmington Trust Company claims that holders of the senior debt of the failed bank are estimated to be owed between $49 billion and $73 billion.

In addition, noteholders may seek payments on unpaid interest and costs and damages associated with Lehman's failure to repay the debt.

Lehman's estate is facing a slew of claims from creditors including bondholders, derivatives counterparties, states, towns and individuals ahead of a September 22 deadline.

Administrators of the London arm of Lehman Brothers said last month the claims it is handling against the collapsed Wall Street bank could total as much as $100 billion.

Unsecured creditors to the failed bank are expected to recover only a small portion of the money owed, due to the large number of claimants, low value of many of Lehman's assets and the complexity in unwinding the bank's operations, analysts said.


Read more: http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE58D3EI20090914

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Keep your eye on this one. WE do NOT want to pay for this with tax dollars!

There will be no taxpayer money injected.

My guess is that claimants will get five or ten cents on the dollar.

picked again to pay off this stuff

For a company to say they have between 49 and 73 billion owed to bondholders is ridiculous at best, criminal at worst. For a company not to know means the books have been tampered with. Of course, all of this needs to be brought out in bankruptcy court.

The order which people get paid are as follows: employees receive their up to last day worked wages, any loans from financial institutions, bond holders, preferred stock. Common Stock holders do not get paid back. Retirement funds are separate from the institution and are paid to the former employees if they have not been already raided. This is very general information.

Bondholders are either secured or unsecured. Debt is either "Senior" or "junior".

There is no artificial head of the line privilege for banks.

instead of financial institutions then bondholders.

that occurred in September 2008.

But, thanks for pretending that the isolated G & M situation is somehow relevant to every bankruptcy.

normal trends. That will certainly change how I read sports stats. :eyes: