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JPMorgan is Lehman's biggest secured creditor



By AP
26 September 2008 @ 09:45 am EST

NEW YORK - JPMorgan Chase & Co. is the largest secured creditor in the Lehman Brothers bankruptcy case, with an estimated $23 billion in claims, according to a recent court filing.

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STT 31.78 3.09
LEH 0.13 -0.17
NMR 6.64 0.01
JPM 22.72 -0.66

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Secured creditors are the first to be repaid in a bankruptcy in the event there is money to be distributed. Secured creditors are paid before unsecured creditors--shareholders rank lowest and often get nothing.

Next on the list filed late Thursday in the bankruptcy court for the Southern District of New York is Hudson Castle Group's Fenway, which is owed $3 billion; Swedbank AB of Sweden with $1.35 billion in claims; and State Street Corp. with $1 billion. Lehman lawyers also listed as secured creditors: MetLife with an $878.4 million claim, New York-based SMBC ($870.3 million) and U.K.-based Danske Bank ($800 million).

Lehman Brothers Holdings Inc. filed the biggest bankruptcy in U.S. history on Sept. 15. It reported assets of $639 billion and debt of $613 billion.

It has moved quickly to sell off key assets before they lose their value, first divesting its U.S. investment banking and trading businesses to Barclays Capital. Earlier this week, Lehman also sold its operations in Asia, Europe and the Middle East to the largest brokerage in Japan, Nomura Holdings Inc.

Lehman has not yet sold off its U.S. money management unit, Neuberger Berman.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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