Has Lehman filed for Bankruptcy?

Discussion in 'Trading' started by The Kin, Sep 14, 2008.

  1. Yes or No with accompanying link.
  2. mwerbe


    not yet, cnbc asia was saying that they had hired bankers to investigate bankruptcy options, cnbc.com is saying that the times is saying they will file for bankruptcy tonight but all indications are it hasn't actually happened yet
  3. The short answer is no. but they are expected to by midnight tonight. (This according to TTN audio feed.

    This is TTN text pertaining to NYT report.

    Sunday, September 14, 2008 5:00:26 PM
    - According to the report, Lehman will seek to place its parent company, Lehman Brothers Holdings, into bankruptcy protection, while its subsidiaries will remain solvent while the firm liquidates its holdins, according to these people.
    - A group of banks will provide a financial backstop to help provide an orderly winding down of the investment bank
    - The Fed has agreed to accept lower quality assets in return for loans from the government.
    - With respect to the bankruptcy filing, Lehman's filing is not likely to resemble those of other companies that seek bankruptcy protection because of the harsher treatment that federal bankruptcy law applies to financial-services frms.
    - NYT adds that changes to the bankruptcy code mean that counterparites to Lehman's credit default swaps can seize their collateral at any time, posing an enormous potential risk to the entire financial markets.
    - Lehman has retained the law firm Weil, Gotshal & Manges to prepare its bankruptcy filing.
    - (reminder from earlier today) LEH: NYT speculates Lehman will be forced into receivership after weekend talks fail to materialize
  4. They will tonight.
  5. If these numbers are correct, it doesn't make sense that they need to file bankruptcy. What's more interesting is that BofA is willing to pay $30 for MER, but not $3.66 for LEH?

    Market Cap: 2.51B

    Total Cash: 540.45B
    Total Cash Per Share: 784.395
    Total Debt: 371.41B
  6. mwerbe


    lehman was dead as soon as it was apparent no one was willing to buy them at any price and they admitted they wanted to sell part of there asset management unit which was their crown jewel, the merrill deal is not done yet and they may well back out the logic is that merrill has a lot of tangible assets like there blackrock stake, real estate holdings and strong brand name as well as the government breathing down there neck to do the merrill deal.
  7. Daal


    of course not, there is always the hope that warren buffett will save the day :p
  8. mwerbe


    wsj reporting merrill deal is done at $29 a share wow glad i'm not short that one
  9. BAC is going to get slaughtered! BAC will be next week.
  10. I read somewhere that they are going to do it at 11:59pm tonight.

    BTW, why does it have to be done tonight instead of first thing tomorrow?
    #10     Sep 14, 2008