Lehman expects bankruptcy plan confirmation next year
The company responsible for the largest banking collapse in U.S. history says its bankruptcy plan will be accepted within the first few months of 2011.
Lehman Brothers Holdings says it's "optimistic" that a bankruptcy court will approve its reorganization plan in the first quarter of next year.
The company has worked to reduce claims on the estate from creditors, with whom its disagreements are "narrowing," according to a Reuters report. Lehman filed for Chapter 11 protection two years ago, and though the case has yet to be officially settled, it has made progress in easing the claims against it from nearly $1.2 trillion to $464 billion.
The report noted that the company will look to further reduce operational costs, and will cut its workforce to 500 people by April 11. Lehman also hopes to complete talks and agreements with affiliates and administrators over the next 60 days.
A Bloomberg report on the case said the firm's aim is to eventually reduce claims to between $250 million and $350 million before it files its confirmation plan.
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