US Unit Prevents Lehman From Paying Debts to Oz
Lehman Brothers Holdings in America is blocking Lehman’s Australian unit from paying its creditors including Local governments, churches and charities as much as $225 Million.
For each dollar of debt, the Aussie creditors were to receive between 33 and 49.9 cents, according to the proposal.
But the U.S. company bought the debt of its Asian unit, which gave it enough votes to reject the proposal when Lehman’s creditor PPB Advisory brought it up this week.
“They’re just asking for more money,” said John Walker, executive director at IMF Australia, Ltd., which funded the lawsuit by the towns and charities.
He said the U.S. company, which filed the biggest bankruptcy in American history in 2008, was not “seeking to resolve this on a principled basis.”