Lehman creditors file US$58 billion competing reorganization plan


NEW YORK — Lehman Brothers Holdings Inc. bondholders filed a rival plan to parcel out the bank’s estimated US$58 billion in assets in the largest U.S. bankruptcy reorganization on record. Hedge fund Paulson & Co., the California Public Employees’ Retirement System (Calpers) and other bondholders that filed the plan on Wednesday said the reorganization proposal offered by Lehman in March favored large banks over other creditors. The bondholder plan, filed with a U.S. bankruptcy court in Manhattan, would combine the claims and assets of Lehman’s various units and pay creditors from a single pool. Lehman’s plan would treat each entity separately, allotting payouts to creditors from the entity that owed them money. “We believe Lehman Brothers Holdings Inc. bondholders are treated unfairly under the debtor’s plan — which largely benefits large banks engaged in risky derivatives business, and foreign administrators — and we want a fair outcome for all stakeholders,” Calpers, the largest U.S. pension fund, said in a statement.