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Lehman Brothers in Bankruptcy Protection
After failing to find a buyer, Lehman Brothers 15, once the fourth largest investment bank in the United States, issued a statement this morning, saying that the company would file for bankruptcy protection on the same day. As soon as the news came out, the US dollar and US stock index futures fell in unison, indicating that the new york stock market may plummet that day.

bankruptcy protection

According to the statement, Lehman Brothers Holdings, excluding its financial enterprises, will file an application for bankruptcy protection with the US Federal Bankruptcy Court in the Southern District of new york on the morning of 15. Lehman Brothers' subsidiaries, including Lehman Brothers Asset Management Company and newberg Berman Company engaged in asset management and investment consulting, will continue to operate and will not be affected by bankruptcy and reorganization.

After trying to find a buyer in June, 5438+04, the board of directors of Lehman Brothers made a decision to apply for bankruptcy protection. On the same day, after the US government refused to provide financial guarantee, Barclays Bank, the third largest bank in Britain, decided to withdraw from the rescue of Lehman Brothers. About three hours later, Bank of America also announced its withdrawal and bought Merrill Lynch instead.

After the government refused to save lives and the retreat of the acquisition was completely cut off, Lehman Brothers finally decided to apply for bankruptcy protection according to Chapter 1 1 of the United States Bankruptcy Law. Once the application is approved, Lehman Brothers Holdings will embark on the road of reorganization under the supervision of the bankruptcy court. This will also be the biggest bankruptcy case in American financial circles after the bankruptcy of the specialized junk bond company Dechong Securities Commodity Company 1990.

Lehman filed for bankruptcy protection on September 15, 2008, and the bankruptcy amount reached a record $639 billion, which became the largest bankruptcy case in American history, and quickly produced a domino effect around the world, becoming a landmark event of the full-scale outbreak of the current financial crisis.

After filing for bankruptcy protection, Lehman's main body "died", the most important investment banking business was sold to Barclays Bank of England, and the asset management business was also split. During the period of filing for bankruptcy protection, Lehman Brothers continued to operate as a holding company of Lehman Brothers, and all business decisions were supervised by the bankruptcy court.

According to American law, during the period of bankruptcy protection, creditors are not allowed to repay their debts compulsorily, which gives Lehman valuable buffer time, so that it doesn't have to rush to sell assets cheaply, and it also has enough time to put forward a perfect bankruptcy reorganization plan and make arrangements on the time limit and way to repay debts.

During the application for bankruptcy protection, Lehman held several debt restructuring negotiations with creditors such as Goldman Sachs Group and Paulson Hedge Fund. The main content of the negotiation is to clarify the priority and proportion of repayment. Harvey Miller, Lehman's chief lawyer, said the negotiation process was extremely difficult and time-consuming. "At the same time, I have to increase the dosage of antihypertensive drugs."

Finally, Lehman reached a settlement with its creditors and submitted it to the bankruptcy court in new york, which was approved by the court in June 5438+February last year. Since then, Lehman began to sell assets and clear debts.

John Suko, chief operating officer of Lehman, said in a statement ending bankruptcy protection that after nearly three and a half years of bankruptcy protection, Lehman finally entered the final liquidation stage and began to pay creditors.