Lehman Brothers Holdings Inc. reached an agreement on a $65 billion liquidation plan with derivatives creditors including Goldman Sachs Group Inc. and bondholders led by the hedge fund Paulson & Co., ending a dispute that threatened to delay its exit from bankruptcy.
The new plan gives more money to holders of guaranteed claims against the defunct firm's derivatives and treasury units, including Goldman Sachs, Morgan Stanley and the hedge fund Silver Point Capital LP, Lehman said Wednesday.
The Paulson group, which includes the California Public Employees' Retirement System, or Calpers, would get less than previously proposed.
Once the world's fourth-biggest investment bank, Lehman fought the Paulson group and the rival group of derivatives creditors for months over control of its liquidation plan.
Lehman, which entered bankruptcy almost three years ago, has twice amended its proposals to pay claims in response to creditor challenges.
"Substantially all" of the proponents of the competing plans are backing the latest proposal after "intense negotiations" this month, Lehman said in filings Wednesday in U.S. Bankruptcy Court in Manhattan.
The compromise reached by Lehman Chief Executive Bryan Marsal, who has been selling assets to pay creditors, ends the threat of "protracted litigation" over the plan, the firm said.
The Goldman Sachs group said in April that Lehman's earlier proposal was unlikely to succeed.
The Goldman Sachs group may sign its consent to Lehman's plan as early as Wednesday, according to a creditor, who declined to be identified because the proceedings are confidential.
Andrea Raphael, a spokeswoman for Goldman Sachs, declined to comment.
Lehman said it will seek approval of the disclosure statement explaining the plan at an Aug. 30 hearing, allowing it to be sent to creditors for a vote.
Marsal told CNBC on June 16 that he expects to begin making distributions in the first quarter of next year.
Lehman so far has raised $25 billion to $27 billion in cash, Marsal said in the CNBC interview.
The plan agreement is "in principle" and Lehman still seeks "consensual resolution" of structured securities claims totaling $55 billion, according to Wednesday's filings.
A hearing is scheduled for July 20 on valuing creditor claims.
Lehman filed for bankruptcy on Sept. 15, 2008, with assets of $639 billion.
The firm has paid about $1.3 billion in fees to managers and advisors since then, according to court papers.
