Lehman brothers liquidating questions to ask when consolidating student loans

The fee committee instituted caps on a number of expenses for outside firms -- 10 cents a page for photocopies, for working meals -- and required that they travel in coach class.It reviewed bills and occasionally negotiated reductions with the firms involved.That portfolio now holds two stocks: Texas-based marketing firm Bazaarvoice (BV) (its top holding at 4,000) and insulation maker Aspen Aerogels (ASPN), But in March, Lehman owned a good deal more: It reported that the value of the stock portfolio had soared to million in the first quarter of 2015, up from the

The fee committee instituted caps on a number of expenses for outside firms -- 10 cents a page for photocopies, $20 for working meals -- and required that they travel in coach class.It reviewed bills and occasionally negotiated reductions with the firms involved.That portfolio now holds two stocks: Texas-based marketing firm Bazaarvoice (BV) (its top holding at $934,000) and insulation maker Aspen Aerogels (ASPN), But in March, Lehman owned a good deal more: It reported that the value of the stock portfolio had soared to $38 million in the first quarter of 2015, up from the $1.6 million reported at the end of 2014.Lehman had apparently received a windfall early this year, with which it bought $33 million of Alcoa (AA) shares and $3.6 million worth of Norwegian Cruise Line Holdings (NCLH), exchanging the $2000 worth of UBS (UBS) shares that it held in December. None of those positions appear to be leftovers from a pre-financial crisis fund: Lehman bought all of those stocks in 20, according to Bloomberg data.

||

The fee committee instituted caps on a number of expenses for outside firms -- 10 cents a page for photocopies, $20 for working meals -- and required that they travel in coach class.

It reviewed bills and occasionally negotiated reductions with the firms involved.

That portfolio now holds two stocks: Texas-based marketing firm Bazaarvoice (BV) (its top holding at $934,000) and insulation maker Aspen Aerogels (ASPN), But in March, Lehman owned a good deal more: It reported that the value of the stock portfolio had soared to $38 million in the first quarter of 2015, up from the $1.6 million reported at the end of 2014.

Lehman had apparently received a windfall early this year, with which it bought $33 million of Alcoa (AA) shares and $3.6 million worth of Norwegian Cruise Line Holdings (NCLH), exchanging the $2000 worth of UBS (UBS) shares that it held in December. None of those positions appear to be leftovers from a pre-financial crisis fund: Lehman bought all of those stocks in 20, according to Bloomberg data.

.6 million reported at the end of 2014.Lehman had apparently received a windfall early this year, with which it bought million of Alcoa (AA) shares and .6 million worth of Norwegian Cruise Line Holdings (NCLH), exchanging the 00 worth of UBS (UBS) shares that it held in December. None of those positions appear to be leftovers from a pre-financial crisis fund: Lehman bought all of those stocks in 20, according to Bloomberg data.

Harvey Miller, a lawyer with Weil, Gotshal & Manges, said he had "no embarrassment about the fees." "You have to think of it in the context that there were literally hundreds and hundreds of professionals...

Much of Lehman's financial and real estate assets would have sold at a sharp discount in the throes of the financial crisis, but have since recovered value under the post-bankruptcy management.

"Was it appropriate to spend that kind of money to have that kind of value creation? In May of 2009, a bankruptcy judge appointed an outside committee to authorize and oversee professional fees in the case.

Still, Lehman’s current two-stock portfolio is a sliver of what it was a year ago, when it had .4 million invested in seven stocks: Besides Aspen Aerogels, Bazaarvoice and UBS, it also owned Warren Buffett’s Berkshire Hathaway (BRKA), General Electric (GE), publisher Houghton Mifflin Harcourt (HMHC), and Synovus Financial Corp. Lehman Brothers Holdings would not comment on the trades or its ongoing restructuring efforts.

But a source familiar with the liquidation process confirmed that Lehman still manages an equity portfolio “primarily to maximize value to pay back creditors”—as the bank’s ultimate mission (and reason for continued existence) is to repay its debts.

Leave a Reply