Lehman Brothers, whose collapse in 2008 signalled
the crisis in the U.S. banking industry and world economy, announced
Tuesday that it had emerged from bankruptcy and plans to start paying
its debts.
John Suckow, Lehman's president during the bankruptcy period, said
the firm would "strategically position assets to produce strong
values," resolve disputed claims and manage expenses.
"Our objective remains to provide the best results possible for
creditors," he said.
The first payout to creditors is to begin April 17, Suckow said.
The company has assets of an estimated 65 billion dollars - but
not in cash. Much of the company's remaining wealth is stuck in real
estate or financial firms.
The bankruptcy is one of the most complicated in US history. Late
last year, creditors agreed to a revised bankruptcy plan. For each
dollar lost in the bankruptcy, they will receive an average of 20
cents, adjusted to the status of their relationships with Lehman
Brothers before the collapse.
That formula will apply to the parent firm in the US. Its
subsidiaries in more than 40 countries including Germany are pursuing
their own bankruptcy processes.
Lehman Brothers collapsed in September 2008 due to speculative
betting on the housing market, where prices ballooned due to rampant
investment in new instruments that bundled mortgage securities, then
burst.
Lehman was once the world's fourth-largest investment bank.
