Lehman Bankruptcy Update: Approval of Disclosure Statement

August 2011

Approval of the Disclosure Statement

On August 30, 2011, the United States Bankruptcy Court for the Southern District of New York approved the Disclosure Statement for the Revised Second Amended Joint Chapter 11 Plan of Lehman Brothers Holdings, Inc. and its affiliated debtors (collectively, the "Debtors"). The Bankruptcy Court's approval of the Disclosure Statement will permit the Debtors to begin soliciting votes to accept the Plan and is a significant step forward in the Debtors' efforts to achieve resolution of the nation's largest-ever bankruptcy. Approval of the Disclosure Statement does not, however, constitute the Bankruptcy Court's endorsement of the Plan. Rather, it signals that the Bankruptcy Court has concluded that the Disclosure Statement contains "adequate information" about the Plan, sufficient to permit a hypothetical investor to make an informed judgment about how to vote on the Plan. See Bankruptcy Code § 1125.

(Due to the size of the Disclosure Statement and its accompanying exhibits, we have not distributed a copy with this Alert. If you would like to receive a copy, please contact us.)

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