Harvey Miller, the lawyer guiding Lehman Brothers Holdings Inc. through the biggest-ever U.S. bankruptcy, sipped a cappuccino at a tourist-filled cafe near Manhattan’s Central Park and reflected on how his client’s collapse five years ago went from unthinkable to inevitable.
General Motors Co. announced in February it was recalling 1.6 million vehicles because of a defect in their ignition systems linked to at least 12 deaths. Claims over deaths or economic losses occurring before July 2009 were blocked by a bankruptcy judge in approving the sale of assets from the former GM to the current auto maker. Lawyers alerted by the recall are now examining pre-bankruptcy deaths and claims to get the ban lifted. Some have used online postings to acquire clients with banned claims.
Lehman Brothers Holdings Inc.’s creditors are set to receive about $17.9 billion next month in the fifth such distribution since the company filed the biggest U.S. bankruptcy at the peak of the financial crisis.