Lehman Brothers Holdings Inc. (LBHI) intends to file a petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York.
None of the broker-dealer subsidiaries or other subsidiaries of LBHI will be included in the Chapter 11 filing, and all of the broker-dealers will continue to operate, the company notes. Customers of Lehman Brothers, including customers of its wholly owned subsidiary, Neuberger Berman Holdings LLC, may continue to trade or take other actions with respect to their accounts.
The board of directors of LBHI authorized the filing of the Chapter 11 petition in order to protect its assets and maximize value. In conjunction with the filing, LBHI intends to file a variety of first-day motions that will allow it to continue to manage operations in the ordinary course. Those motions include requests to make wage and salary payments and continue other benefits to its employees.
Source: Lehman Brothers Holdings Inc.