Lehman plan receives support from major creditors

Friday, July 1, 2011, Vol. 35, No. 26

NEW YORK (AP) — Lehman Brothers is getting broader support for its new bankruptcy plan.

The investment bank, which filed for bankruptcy at the height of the financial crisis in 2008, said Friday that creditors holding claims of $100 billion have approved its payment plan. Alternative plans will be put on hold while Lehman moves its proposal forward.

The plan still must be approved by a majority of creditors and the federal bankruptcy court.

Lehman Brothers Holdings Inc. also said that it has settled derivative claims with seven of the 13 largest banks. Lehman expects settle an additional claim "shortly," resolving $9.6 billion in derivative claims and corresponding guarantee claims for $6.2 billion.