Global Lehman Admins To Share Bankruptcy Info

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Court-appointed administrators overseeing Lehman Brothers Holdings Inc.'s global bankruptcy proceedings have signed a multilateral agreement allowing them to share information and coordinate the insolvency process as the financial services firm wends its way through more than 75 distinct bankruptcy filings, Bankruptcy Law360 reported. Administrators and trustees in the U.S., Germany, Australia, Hong Kong and Singapore signed the Lehman Protocol on May 12, aiming to create a framework to "minimize the costs and maximize the recoveries" of Lehman's creditors across multiple jurisdictions, the company announced on Tuesday. Although the document is not legally enforceable and is still subject to court approval, the signatories "recognized that in a case as significant and massive as Lehman, and as unprecedented, that coordination was key," according to Richard Krasnow, a partner in Weil Gotshal & Manges LLP, Lehman's attorneys in the U.S. The protocol lists six goals in addition to coordination, including communication, information and data sharing, asset preservation, claims reconciliation, the maximization of recoveries and comity. Although the document would not confer duties or obligations on officials that could conflict with local law, it urges them to coordinate procedures for filing, reviewing and objecting to claims, including matching up filing deadlines. Signatories would also be encouraged to file consistent reorganization or liquidation plans across jurisdictions. Read more. (Subscription required.)