Lehman says new bankruptcy plan gets wider support

Reuters

(Reuters) - Lehman Brothers Holdings Inc <LEHMQ.PK> said its second amended $65 billion bankruptcy liquidation plan won support from thirty institutions and affiliates, possibly setting the stage for the end of the biggest bankruptcy in U.S. history.

Creditors holding claims in excess of $100 billion supported the plan, the bankrupt company said in a statement.

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Those signing the plan support agreements "include substantially all of the proponents of the two alternative plans that were proposed earlier this year," Lehman said.

Earlier in the week, sources told Reuters that one group comprised bondholders, including Paulson & Co and CalPERS pension fund, and the other is a derivatives group including Goldman, hedge fund Silver Point Capital LP, Morgan Stanley <MS.N> and other creditors.

Lehman said that the proponents of the alternative plans have agreed to hold them in abeyance, while it moved to getting approval of the second amended plan.

Lehman has also entered into settlement agreements, as per a settlement framework proposed on May 31, with seven of the 13 institutions that have asserted derivative claims.

Lehman said it also expects to enter into a settlement agreement with an additional bank shortly to resolve $9.6 billion in derivative claims and corresponding guarantee claims for $6.2 billion.

(Reporting by Tanya Agrawal in Bangalore; Editing by Savio D'Souza)