… represent just some of the assets Lehman Brothers’ restructuring advisers are attempting to sell, according to page 21 of this presentation. (H/T Footnoted)
Alvarez & Marsal, who are acting for Lehman, have already sold or agreed to sell six aircraft, including (inexplicably) four Boeing 737s for $53m (compared with an estimated book value of $57m).
As for the art, estimated at $30m, Alvarez & Marsal are “establishing title, inventorying and consolidating to safe locations”. Very exciting.
Other interesting tidbits in the presentation include the section on “challenges to achieving objections” (page 24):
A&M Responsibility: Maximize Recovery Value of Assets
Issues:
1) Currently a very depressed and illiquid market
2) Need access to interactive systems to manage assets (TSA dependent)
3) Need to resolve collateral disposition issues with JP Morgan, including the liquidation of balance of Debtors pledged collateral still held and under control of JP Morgan
4) Need to coordinate with LBI Trustee as to disposition of remaining collateral pledged with JP Morgan
5) LBHI is a large creditor of LBIE, LBI and certain Asian entities which are outside its control. Undetermined when or what value will be realized from those proceedings
(TSA = Trading Solutions Architecture; LBHI = Lehman Brothers Holdings International; LBI = Lehman Brothers Inc; LBIE = Lehman Brothers International Europe).
Other challenges — this time to mitigating potential liability and reconciling claims - include the large number of derivative trades and counterparties and certain technological hurdles, as alluded to above.
Still, Alvarez & Marsal are optimistic, stating:
Objective is to position the Debtors for exit from bankruptcy in 18-24 months.
But as Footnoted, err, notes, “Anyone want to take that bet?”
Related link:
Around the world in a Lehman plane - FT / John Gapper
