Lehman Brothers Defies Bankruptcy to Become a Business Again

[dipsydoodle]

Source: Bloomberg

Lehman Brothers Holdings Inc. is a business again two years after declaring the biggest bankruptcy in history, with billions of dollars in cash, 500 employees, real estate and investments in other bankruptcies.

The defunct New York-based investment bank, being run by Bryan Marsal, has almost $20 billion in cash and a monthly payroll of up to $45 million for managers and advisers. Hard-to- sell investments are being managed by 400 employees, and the firm is spending tens of millions of dollars on litigation set to stretch to at least 2012.

Lehman’s strategy is unusual for a bankrupt company that’s liquidating. Marsal, 59, is betting that he’ll raise twice as much by holding Lehman’s worst-performing investments as he would by conducting a fire sale.

“The liquidating estate is acting like an ongoing investment concern,” said Lawrence A. Larose, a lawyer with Winston & Strawn LLP’s financial-restructuring practice in New York. “It’s trying to slowly extricate itself from these billions of dollars of investments around the world.”

Read more: http://www.bloomberg.com/news/2010-09-15/lehman-defies-bankruptcy-to-be-a-business-with-billions-in-cash-property.html

[truthisfreedom]

1. Good luck, asshole.

[Demeter]

2. The Con Goes On

[dixiegrrrrl]

3. Do you think they really believe their garbage has a future value?

Or are they holding onto it and calling it gold?

I don't get it.

They were not even brought up on charges for the pre-bankruptcy fraud.

The world has gone upside down.

[Demeter]

5. They Still Get Paid Their Wages

So there's money for them, at least.

[harun]

6. Because the whole system is a fraud and they would say so

if brought up on charges.

[Yupster]

4. The bondholders are still waiting

to see what they will get from the sale of assets. It's looking like 10 - 20 %.

Which is still better than the GM bondholders who just had their money illegally stolen from them.