creditors and Neuberger Berman
executives yesterday got a dose of good news: Lehman Brothers Holdings Inc. is selling its equity in Neuberger Berman, resulting in some $1.5 billion for long-suffering creditors of the now-defunct firm, Reuters reports
According to a court filing, Lehman said it plans to redeem its preferred shares at par, then monetize its 49 percent stake in Neuberger's common equity over several years. The preferred shares would bring in some $845 million immediately, with more value stemming from common shares over the next five to seven years, according to the filing in U.S. Bankruptcy Court in Manhattan. The plan is set for an approval hearing on Nov. 30 before Judge James Peck.
As well, Lehman's selloff of its stakes was welcome news for Neuberger as it tries to emerge from the shadows of one the most high-profile bankruptcies in U.S. history. The firm said in a statement that the sale affords it to "purchase the (Lehman) estate's remaining interests in the firm, creating a clear path to Neuberger becoming 100 percent employee-owned."
The Wall St. Journal
also covered the Lehman announcement
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