Wednesday, August 19, 2009

A rally in Lehman debt

From Clusterstock:
New York law firm Weil, Gotshal & Manges was approved for $55 million for work done on the Lehman bankruptcy for September through January of last year and has requested the bankruptcy judge approve another $45.2 million for hours billed February through May.

Not a bad gig. Of course people are getting angry over this, watching these attorneys raking it in. But these fees impact only one group of people - Lehman creditors. And the creditors don't seem too concerned about the attorneys' fees. An institution as complex as Lehman will need all the help it can get to recover assets.

Apparently Weil, Gotshal & Manges has been doing something right. Lehman debt has been gradually trading up. The medium term senior unsecured notes (below) are at almost 19 cents on the dollar and actively traded.

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