Lehman Brothers Bankrupt, Creditors Looking for Their Money

By: Sara Sindelar

Lehman Brothers collapsed back in September 2008 at the start of the financial crisis. As we all know the impact this one company’s collapse made on the economy worldwide. With thousands of jobs lost, billions and billions of dollars lost it was a day to remember. Now, a year later, they are in court working with their bankruptcy filing.

Lehman Brothers Bankruptcy is still feeling the heat as creditors are knocking at the door for their share. After they filed for bankruptcy in September 2008 they have been working through the steps and battling in court. Last week 16,000 creditors knocked on the door for their money. Lehman is still waiting for many creditors paper work to come through making an estimated total of over $1 trillion worldwide. New York City filed for their payback amounting to over $1 billion and with the order that they would be paid first. Other companies like Morgan Stanley Capital filed for over $1 billion and Abu Dhabi Investment Authority filed for roughly $610 million as well as companies like Giants Stadium LLC.

These creditors are coming from all over the world. Many companies from Belgium filed for claims totaling over $700 million. The US Bankruptcy court set a deadline for creditors to file by September 22 though there are some exceptions with a deadline of November 2. The total amount in loss by creditors will not be known for quit some time.

Sources:

http://www.youtube.com/watch?v=AYKhtLc6ye0

http://www.google.com/hostednews/afp/article/ALeqM5jlOUdghhcT3rjx0hJW3JUtBifASQ

http://www.bloomberg.com/apps/news?pid=20601103&sid=aAW5NLgHTOMU