Lehman Seeks $90M To Pay D&O Legal Fees

Law360, New York (November 8, 2010, 7:14 PM EST) -- Lehman Brothers Holdings Inc. has asked the judge overseeing the company's bankruptcy to free up an additional $90 million in insurance proceeds to cover legal expenses of directors and officers.

Lehman is close to exhausting the $70 million in insurance money that had been previously exempted from the bankruptcy’s automatic stay to pay defense costs stemming from the investment bank’s panic-inducing 2008 collapse, it said in a motion filed Oct. 27 in the U.S. Bankruptcy Court for the Southern District of New York.

“Accordingly, the debtors...
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