Insolvency RecordCASE FILES

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Lehman Brothers Holdings Inc. insolvency: proceedings and outcome

Lehman Brothers Holdings Inc. filed for Chapter 11 in the US Bankruptcy Court for the Southern District of New York on 15 September 2008, reporting assets of over 600 billion USD. Its North American core business was sold to Barclays and parts of its Asian and European operations to Nomura. The separate liquidation of the broker-dealer Lehman Brothers Inc. under the Securities Investor Protection Act closed in September 2022 after returning more than 115 billion USD to customers and creditors.

Liquidated Lehman's businesses were sold in parts and its estates were wound down under a Chapter 11 plan that became effective on 6 March 2012. The separate broker-dealer liquidation fully satisfied 111,000 customer claims and closed in 2022.1,2,4

First filing15 September 2008
Assets reportedUSD over 600 billion
Proceedings2

Assets as reported at filing by Bloomberg and MarketWatch, cited by Wikipedia. Figures as of 15 September 2008.4

Proceedings

TypeCourt or bodyCaseFiled
Chapter 113,1,4US Bankruptcy Court, Southern District of New York, United States08-13555 (JMP)15 September 2008
SIPA liquidation (Lehman Brothers Inc.)2US District Court, Southern District of New York, later US Bankruptcy Court, Southern District of New York, United States19 September 2008

Timeline

  1. Lehman Brothers Holdings Inc. filed for Chapter 11 in Manhattan.4,3
  2. Liquidation of the broker-dealer Lehman Brothers Inc. began under the Securities Investor Protection Act, with James W. Giddens as trustee.2
  3. Judge James Peck approved the sale of the core North American business, including the 745 Seventh Avenue office, to Barclays.4
  4. Nomura agreed to acquire Lehman's Asia Pacific franchise, followed on 23 September by its Europe and Middle East investment banking and equities businesses.4
  5. The Chapter 11 plan of Lehman Brothers Holdings Inc. and its affiliated debtors became effective, with initial distributions to commence on 17 April 2012.1
  6. Judge Shelley C. Chapman closed the Lehman Brothers Inc. liquidation proceeding.2

Creditor recovery

In the Lehman Brothers Inc. liquidation, customers received 106 billion USD, secured, priority and administrative creditors received 100 percent, and unsecured general creditors received over 9.372 billion USD, a 41.2841 percent recovery, according to SIPC.2

Sources

  1. US Securities and Exchange Commission (EDGAR), Lehman Brothers Holdings Inc. Form 8-K Exhibit 99.1 (notice of effective date of plan) (6 March 2012)
  2. Securities Investor Protection Corporation, Lehman Brothers Inc.'s 14-Year Liquidation Successfully Concludes (28 September 2022)
  3. US Government Publishing Office (GovInfo), Lehman Brothers Holdings Inc., case 08-13555
  4. Wikipedia, Bankruptcy of Lehman Brothers (27 October 2026)