New York: Lehman Brothers Holdings, whose bankruptcy last September worsened the financial turmoil, is looking to spin off its assets, including real estate and private equity holdings.
“Lehman Brothers Holdings Inc is taking steps to spin off the Wall Street firm’s remaining assets—a collection of battered real-estate and private-equity holdings—to investors willing to bet the value will rise as the economy recovers,” the Wall Street Journal has reported.
Lehman Brothers filed for bankruptcy in September 2008, a development which pushed global markets deep into crisis.
The daily said that internal Lehman calculations have pegged their fair-market value at about $45 billion.
“Lehman values the assets at $400 billion at non distressed prices, including $300 billion in the servicing of assets,” the publication noted.
Pointing out that a spin-off would be the most significant move yet to clean up the bankruptcy estate of Lehman Brothers, the report published online said that the entity owes creditors some $200 billion.
Attributing to executives now running the remnants of Lehman, the daily said that they want to be prepared for a rebound in asset values.