American bank Lehman Brothers is bankrupt
15 September 2008American bank Lehman Brothers Holdings Inc. (LBHI) has declared about the intention to submit the application on bankruptcy to the American court on bankruptcies according to reference 11 of United States Bankruptcy Code.
According to the application, such decision was accepted for protection of bank’s actives and maximization of its cost for shareholders.
Thus the application for bankruptcy does not concern broker divisions of the company, which will continue to work in former mode: in particular, the application for bankruptcy will not mention division Neuberger Berman LLC and Lehman Brothers Asset Management.
According to the legislation on bankruptcy, LBHI is measured to send to the United States Bankruptcy Court a list of prime actions, which will allow the bank to continue operational activity regularly, to court on bankruptcies. These prime actions will, first of all, include payment of wages and other indemnifications to employees.
Now LBHI studies an opportunity of sale of the broker operations and as appeared earlier, negotiates for sale of the investment management division to several potential investors. Sale of these divisions is considered alongside with other strategic alternatives.
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