Lehman Brothers Bankruptcy
Many Lehman Note holders have filed claims in the Lehman bankruptcy proceeding and are hoping to recover their losses in the Notes through that process instead of filing an individual securities arbitration claim. However, it is appears that based on the proposed Third Amended Joint Chapter 11 Plan of Lehman Brothers, investors will only receive about 21 cents for every dollar invested in Lehman Notes. The unsecured creditor’s committee representing unsecured investors in the Lehman Brothers bankruptcy proceedings announced a reorganization plan, which will result in investors holding the company’s “guaranteed” notes realizing significant losses unless they take additional legal action, such as filing an arbitration claim against UBS with the Financial Industry Regulatory Authority.
According to court records, Lehman Brothers faces claims of over $320 billion from creditors who allege the company owes them money. However, it is estimated that Lehman is likely to pay out only $65 billion to its creditors. Lehman Brothers 100% Principal Protection Note holders should contact Klayman & Toskes to explore their legal options, and to discuss the possibility of filing an individual securities arbitration claim to potentially recover the remaining amounts that are not part of the proposed bankruptcy plan. Investors should avail themselves of all remedies in attempting to recover the difference. Further, investors should determine if they have to contend with any statute of limitations issues.