Partner Chip Bowles Comments on Recent Lehman Order for Bloomberg
Bingham Greenebaum Doll LLP partner Chip Bowles was recently quoted on the most recent developments regarding Lehman Brothers Holding Inc., seeking an order blocking government taxes on deals.
Once the fourth-largest investment bank, Lehman is currently still in the liquidation process after officially exiting their Manhattan Time & Life Building offices after the biggest bankruptcy in U.S. history in March. Lehman, which is selling off assets in order to pay creditors an additional $32 billion by 2016, has asked a judge to sign an order blocking governments from taking taxes on any deals it may strike with buyers. Since March, Lehman has paid creditors nearly $33 billion and says it plans payments of $65 billion in compensation for money lost during the 2008 downfall of the company.
According to Lehman, the order would “restate” immunity from taxes that currently exist under a court-approved liquidation plan. The order would “eliminate the confusion and hesitation” of possible buyers and government officials by referencing and restating certain aspects of relief that were previously granted in the plan.
Bowles, who focuses his practice in the area of bankruptcy law, sees a different outcome resulting from this order. He told Bloomberg, “Partly because of the scale of its liquidation, Lehman’s claim to be immune from taxes will draw a ‘counter-argument’ from governments seeking revenue.”
For the full story, click here.