LEHMAN'S LEGAL TANGLE
LEHMAN'S LEGAL TANGLE
It's beginning to look as if the Lehman Brothers bankruptcy proceedings could be hopelessly snarled for years. When the firm went under last September, it listed $613 billion in liabilities--the biggest corporate bankruptcy ever. It also had more than a million open derivatives contracts spread among offices all over the world, with each office governed by local bankruptcy laws. Now a feud is brewing over whether all the entities will work together or adopt an every-office-for-itself approach. Earlier in April, administrators for many of the worldwide branches signed a protocol for information-sharing that should help the firm unwind efficiently. But the London office, which served as a clearinghouse for European operations, is so far refusing to go along--and that could throw a giant wrench in the works. (Crain's New York Business)
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