Lehman Brothers bankruptcy is to end in 2 years

Lehman Brothers Holdings Inc hopes to exit bankruptcy protection in 18-24 months. However, the judge overseeing the case stated more international coordination was necessary to do so.

Bryan Marsal, the co-founder of turnaround firm Alvarez & Marsal and current chief executive of Lehman said he believes the situation in the company is now "stable." Nonetheless, Judge James Peck stated in the situation, when there were many insolvency proceedings pending around the world, the case of Lehman was "undoubtedly the most massive cross-border insolvency in the history of the world." Moreover, he told lawyers they had to work out protocols for global issues and creditor claims to be resolved efficiently.

Marsal told Lehman currently had a cash balance of nearly $6 billion as of January 2, against only $3.3 billion on September 14, the day before it had filed for bankruptcy protection.

Moreover, Judge Peck approved a request on appointment of an examiner to probe Lehman's collapse. The examiner will produce a report on the issues related to Lehman collapsing.

Lawyers representing Lehman, its creditors, the U.S. Trustee's office and other related parties will be meeting during the next few days, in order to work out details relating to the depth of the examiner's investigation.

Source: Reuters