Lehman Brothers emerges from bankruptcy - with a $1.6bn bill

Former global financial services firm Lehman Brothers finally emerged from bankruptcy yesterday after three years of advice from the business finance and restructuring group at New York law firm Weil Gotshal & Manges.

Stock Exchange collapse: Lehman Brothers finally resurface

The Am Law Daily reports that, following the abrupt collapse of New York-based Lehman, Weil was forced to launch the biggest chapter 11 case in US history.
Marcia Goldstein, chairman the Weil group, told Am Law: We're very proud of the work we've done. The [bankruptcy] judge has been extremely complementary of us.’

Liquidation process

Lehman has announced that it will begin to make payments back to creditors on 17 April. However, Weil bankruptcy partner Lori Fife – the firm’s lead lawyer on the case – believes Lehman should remain a concern for at least three years of the liquidation process.
Am Law’s research shows that Lehman’s total bankruptcy bill for outside lawyers, accountants, and other restructuring professionals has reached almost $1.6 billion. Of that amount, approximately $383 million has been paid to Weil, representing 8 per cent of the firm’s gross revenues over the past four years.

Reorganisation plan

Meanwhile, another bankrupt Weil client, Washington Mutual, saw a judge approve an almost $7 billion reorganisation plan that could set funds flowing later this week.

Email your news and story ideas to: news@globallegalpost.com