Every once in a while, I put my gold-digger instincts to good use: I've been researching the Lehman Brothers bankruptcy proceedings, trying to determine what the Lehman Brothers estate is actually worth.
Whilst it's really hard to say, we do know that Lehman still has some quite valuable assets, including:
1. a 49% stake in Neuberger Berman (Neuberger has assets of about $130 billion)
2. Extensive multi-million art collection with about 4,400 works (900 from Neuberger Berman and 3,500 from Lehman)
3. proceeds from sale of $24.9 million corporate plane
4. selling $6.25 million undeveloped land in Hamilton Township, NJ
5. proceeds from Barclays' partial acquisition of Lehman businesses and assets ($1.75 billion purchase of Lehman core business + $1.5 billion purchase of Lehman headquarters)
6. Lehman retained $20 billion in securities assets that were not transferred to Barclays as part of the transaction
7. proceeds from $225 million sale of Lehman's Asia Pacific business to Nomura
8. sale of Lehman business in Europe and the Middle East to Nomura for $2
9. other assets on balance sheet that have not been spun off yet
Meanwhile, fees threaten to bring the bankrupt Lehman Estate into a further downtrend:
1. Lawsuits alleging fraud from shareholders
2. Lehman Brothers UK sues US arm for £61 billion
3. Accountancy fees of more than £120 million
4. $5 million lawsuit from former Lehman employee
5. Legal fees of more than $100 million to date
What will the recovery for shareholders and bondholders be? With the legal battle heating up so much, delays are inevitable. But the fact that the Lehman Estate has managed to retain a 49% stake in Neuberger Berman is good news. Plus, what an art collection!
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