Lehman Brothers seeks bankruptcy end with 20 cents on the dollar payouts for creditors

The bankrupt investment bank Lehman Brothers Holdings Inc will ask a bankruptcy judge on Tuesday to let creditors vote on its USD 65 billion payout plan, which would lead the way to end the biggest bankruptcy in history, according to Reuters. The plan covers only 20 percent of the debt.

The bank filed for bankruptcy in September 2008 and will file its plan in front of the U.S. Bankruptcy Court in Manhattan. Judge James Peck will rule the meeting, and if he deems the plan sufficient, then its creditors can vote it on November 4. Creditors would get 20 cents on the dollar, on an average, according to the plan. Lehman has said it hopes to begin creditor payouts in the first quarter of 2012. The bank has received promises of support from most of its largest creditors. Two groups of these hold USD 100 billion in claims, almost one third of the total claims against Lehman Brothers. Lehman Brothers' bankruptcy was the biggest in US history and is considered to be a key factor in the international financial meltdown that followed after September 2008. Full Reuters article here. editor@romania-insider.com (photo source: Photoxpress.com)