Lehman May Hold Bad Assets, Give Creditors Stock

Law360, New York (February 3, 2009, 12:00 AM EST) -- If Lehman Brothers Holdings Inc.'s illiquid assets cannot be sold off in the next few years, Lehman may give its creditors stock in asset-holding entities, according to a company spokeswoman.

The plan would include real estate holdings and private equity investments, which would likely yield very low prices if they were sold on the current market. Real estate and private equity investments would probably be held in separate companies with the private equity investments in a closed-end fund, the spokeswoman said.

The company is hoping to...
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