The Centerbridge hedge fund does not think Lehman Brothers Holding Inc's
Lehman Brothers said recently that creditors holding more than $100 billion of claims now support its reorganization plan, moving the company closer to emerging from the largest-ever U.S. bankruptcy. A Lehman lawyer, Lori Fife, said earlier this month the company had enough creditor support to win confirmation of its reorganization.
Centerbridge Credit Advisors LLC, a major investor in bankrupt companies, disputed that in a Friday court filing and said it and other creditors would oppose Lehman's confirmation.
The hedge fund dismissed the support for Lehman's plan as the result of horse trading that was siphoning value away from other creditors, according to the filing in U.S. Bankruptcy Court in Manhattan.
Centerbridge said it intended to undertake discovery to build its case against the plan.
A Lehman spokeswoman declined to comment.
Thirty banks and hedge funds such as Paulson & Co agreed in writing to support the Chapter 11 plan filed last month by what remains of the fourth-largest U.S. investment bank.
These supporters agreed not to pursue their opposing plans so long as Lehman's plan retains enough creditor support and Lehman emerges from bankruptcy by March 31, 2012.
The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.
(Reporting by Tom Hals; Editing by Phil Berlowitz)