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Lehman Bros. sweetens deal in bankruptcy plan

Mon, Jan 31st 2011 12:00 am
NEW YORK (AP) - Lehman Brothers is offering bondholders more money in a revised plan to exit bankruptcy.

The investment bank, which filed for bankruptcy during the height of the financial crisis, offered the revised plan in a filing Jan. 25.

In the new plan, Lehman Brothers Holdings Inc. proposed to increase its payments to bondholders to 21.4 cents on the dollar, up from 17.4 cents, which it had offered in a previous plan filed in March.

"The value of our assets has gone up," John Suckow, president and chief operating officer of Lehman Brothers, said in an interview.

Lehman also changed how much other kinds of creditors would receive.

In the new plan, those creditors would receive between 11.2 cents and 19.8 cents on the dollar, depending on the seniority of their claims. The March plan had proposed that these creditors would receive a flat amount of 14.7 cents on the dollar.