Lehman creditors seek to probe firm: report (Reuters)
October 5, 2008
Fri Oct 3, 9:37 PM ET
NEW YORK (Reuters) - Unsecured creditors of Lehman Brothers Holdings Inc (LEHMQ.PK) asked a suite overseeing Lehman's insolvency transactions for authorisation to analyse how the concern ran discover of money, The Wall Street Journal reportable on its website on Friday.The assemble said that JPMorgan Chase & Co (JPM.N), which acted as a distributer between Lehman and another lenders, helped flash a liquidity crisis at Lehman before it filed Chapter 11 insolvency transactions early this month, the Journal reported.
The assemble prefabricated the allegement in a filing with the federal insolvency suite in New York, the Journal reported.
"These assertions upraised by the creditors' commission are unfounded conjecture," JPMorgan said in a evidence free to the Journal. "We module come them at the pertinent instance in insolvency court."
According to the suite filing, most $17 1000000000 in Lehman change and securities were existence held at J.P. moneyman as collateral, the Journal reported. In its claim, the creditors assemble alleges that J.P. moneyman "withheld $17 1000000000 in immoderateness assets" from Lehman Brothers "in the life meet preceding to the insolvency filing," the essay said.
The creditors feature that refusing to attain the assets acquirable to Lehman strength hit contributed to Lehman's change problems, the essay said.
JPMorgan and Lehman representatives were unobtainable for comment.
(Reporting by parliamentarian MacMillan; redaction by Carol Bishopric)
Tags: bankruptcy filing, bankruptcy proceedings, bishopric, chapter 11 bankruptcy, chase co, conjecture, excess assets, federal bankruptcy court, fri, j p morgan, jpm, jpmorgan chase, lehman brothers, lehman brothers holdings, lehman brothers holdings inc, liquidity crisis, middleman, robert macmillan, unsecured creditors, wall street journalLink to this post...
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(Reuters)
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