Lehman Seeks To Mitigate Mortgage, Loan Exposure

Law360, New York (May 15, 2009, 12:00 AM EDT) -- A nondebtor subsidiary of bankrupt Lehman Brothers Holdings Inc. has sought court approval for the purchase of hundreds of millions of dollars in mortgages at a major Florida real estate venture.

Thursday's motion in the U.S. Bankruptcy Court for the Southern District of New York related to LB Carillon Construction LLC's plan to purchase mortgages in Miami Beach, and was put before the court “out of an abundance of caution.”

According to the motion, beginning in 2006, Carillon loaned more than $522 million to finance the...
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