Lehman Brothers Holdings Inc, which filed for the largest bankruptcy in US history on 15 September 2009, when it listed assets of $639 billion and liabilities of $613 billion (See: Uncle Sam to the rescue of Lehman Brothers) is considering spinning off its remaining assets, according to The Wall Street Journal.
Sales of assets, including Lehman's brokerage operations, have so far brought in about $3.5 billion in cash.
The assets to be spun off include real-estate and private-equity holdings according to the report in the paper. The report adds that the company is looking at investors willing bet on assets rising in value as the US economy recovers.
According to internal Lehman calculations the fair-market value of the assets is estimated at about $45 billion the report says.
The value of the assets at non-distressed prices amount to $400 billion including $300 billion in servicing of assets, according to Lehman, the report says.
The non-distressed prices of the assets are valued at $400 billion by Lehman, including $300 billion in the servicing of assets, the paper said.
According to the report Lehman still owes creditors around $200 billion.
Lehman executives told the paper that the plan was to separate the asset-holding company from the bankruptcy estate by the beginning of 2010 and to later to start selling company shares to the public.
Lehman is attempting to retain and manage assets rather than selling them off in a weak market. It agreed to sell its Neuberger Berman investment-management business to its managers last month in an all-stock deal that left the former blue chip investment banker's bankruptcy estate with a 49-per cent stake. (See: Private equity firms Bain, Hellman buy Lehman investment unit for $2.15 billion)