Creditors in the Lehman Brothers bankruptcy case will get their day in court today. At a hearing is scheduled in bankruptcy court in lower Manhattan for 11 a.m. today, creditors will ask a judge to open an investigation into assets allegedly transfered out of Lehman’s European arm just before bankruptcy was declared and they will change sale of Lehman’s Neuberger Berman money management business.
From the Associated Press:
Harbinger is asking that U.S. Bankruptcy Judge James Peck allow the inquiry and has argued in court papers that Lehman has not disclosed any information about cash transfers that may have been made among Lehman operating units ahead of the bankruptcy filing. It said a speedy inquiry was important to preserve the assets. “This is why information concerning the debtors’ cash management and alleged transfers is so vital now,” lawyers wrote.
Lehman opposes Harbinger’s request and called it “inappropriate, unjustified and destructive,” in a court filing. Lehman’s lawyers argued that Harbinger, and others who have seconded its request, are only trying to get what they’re owed without regard for the fact that an investigation could be harmful because of the waste of time.
Harbinger has been joined by Well Fargo Bank NA, Newport Global Opportunities Fund LP, Federal Home Loan Bank of Pittsburgh, Fir Tree Value Master Fund LP and others.
Partly at issue in Harbinger’s request is $8 billion that Lehman Brothers’ European business says was wrongly kept by Lehman’s parent company, money the European arm felt should have been sent back the day of the filing.
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