Lehman Plans To Form Asset Manager

Lehman Brothers Holdings has proposed a reorganization that the investment bank hopes will allow it to exit bankruptcy and includes plans to create an asset management business.

In a filing with the U.S. Bankruptcy Court for the Southern District of New York, Lehman proposed the creation of LAMCO, an asset management business that would specialize in the bank’s commercial real estate, mortgages, principal investments, private equity corporate debt and derivatives assets.

In addition to handling debtors’ assets, Lehman said in its plan that LAMCO is “well-suited for management of third-party assets and the production of revenues that will benefit the stakeholders of that entity.” Click here to read the Lehman reorganization plan.