Mark-To-Market Shift Could Raise Lehman's Value

Law360, New York (October 2, 2008, 12:00 AM EDT) -- The value of Lehman Brothers Holdings Inc.'s estate could get a boost from efforts to relax or suspend the application of mark-to-market accounting rules, though experts say changes to fair value accounting guidelines wouldn't lead to greater recoveries for creditors in Chapter 11 cases generally.

Amending mark-to-market requirements wouldn't impact creditor recoveries overall, said Jack Williams, resident scholar at the American Bankruptcy Institute and professor at Georgia State University College of Law. But Williams added a caveat.

In a situation in which a company — for...
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