Lehman Brothers has released a new plan for dividing up billions of dollars among its creditors, The Wall Street Journal reports. The plan, which will help Lehman in exiting bankruptcy, comes after its previous plan faced opposition from bondholders, including Paulson & Company.
The bank’s creditors holding senior unsecured claims will recover 21.4% of their claims under the new plan, up from 14.7%, only if they accept the proposed plan. Lehman’s original plan allowed claims against a particular debtor, which would have been paid from the assets of that debtor, with recoveries for unsecured creditors ranging from about 10 cents on the dollar to 44 cents.
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