Lehman Posts Bankruptcy Status Update
Among facts stated which are actually relevant for creditors are:
- Total headcount has been reduced from 25,158 at filing 9/15/2008 to 4,142 at 1/1/2009
- A&M has 6 asset teams in place with defined tasks/plans
- Cash position has grown from $3.3 billion at filing to almost $7 billion on 1/2/2009
- Cash generated from asset sales is $1.7 billion consisting of $1.3 billion Barclays sale, $0.2 billion sale of Eagle Energy, and $0.1 billion R3 sale (Ed. to mega insider Rick Rieder)
- $145 million generated from subsidiary receipts, $86 million from investments and $17 from other.
- All this was offset by $293 million to keep the liquidation "operating"
- Lehman's loan portfolio at end of 2008 was $33 billion retianed and $8.4 billion pledged
- Reduced continget liability: unfunded commitments have been reduced by $6.3 billion (20%) mitigating potential claim exposure
- Carrying value of its 1,409 private equity principal investments was $12.3 billion
- Interestingly, total Real Estate Assets, allegedly the rotten fruit that was the cause of all this shebang, were valued at $42.9 billion (of which residential was only $3.4 billion, and the balance is commercial real estates spread among North America, Europe and Asia)
- Currently Lehman notes it has 45 legacy commercial real estate teams in place, 3 residential, and 8 corporate
- Lehman's derivatives book has been successful in collecting $2 billion in cash as of 1/2/2009; Curiously in the Deriv Book, there was $23.8 billion of receivables at petition with 3,930 ISDA counterparties (of this $14.3 billion, or 1,808 counterparties has been terminated)
- Neuberger Berman sale results in a $1.8 billion realized investment: $1 billion in retained stock and $0.8 billion in retained cash
- And of course the other assets, which are probably most interesting to our readers, which include a 2008 G550 airplane, 3 CRJ 200s, one Boeing 767 and one Sikorsky 76C
Lehman's bonds have recently traded at about 12 cents on the dollar indicating the market is expecting recoveries of around $16 billion on the roughly $150-160 billion of unsecured claims. Seems that if A&M continues doing their job efficiently (which is a change from prior sentiment, with bondholders using some very fancy expletives when referring to Bryan Marsal previously), then these bonds could actually run up quite a bit even in this horrendous environment. Also at 3pm Judge Peck appointed an examiner in the Lehman bankrtupcy case... Depending on just how big of a fan of Dick Fuld the examiner may be, all the actions of the Gorilla taken just before the bankruptcy may end up having a pretty Madoffesque impact on his current freely-roaming lifestyle.