Goldman Sachs and Other Derivative Creditors in Lehman Brothers Plan Settlement

July 1, 2011

On July 1, 2011, Lehman Brothers and its key creditors—including several clients of Cleary Gottlieb—reached an agreement resolving various disputes concerning Lehman’s chapter 11 plan. Cleary Gottlieb played a lead role in the negotiation and finalization of plan settlement documentation as counsel to Goldman Sachs and other creditors holding substantial derivative claims, having served as the principal drafter of a competing chapter 11 plan for the Lehman debtors that was filed by 23 major financial institutions including Goldman Sachs and other clients. Cleary Gottlieb also played an instrumental role in negotiating a framework for resolving nearly $10 billion in derivatives claims. The competing plan, as well as the framework for derivative claims, was a significant catalyst for resolving various disputes with the Lehman estates that led to the filing of a consensual chapter 11 plan by Lehman Brothers supported by more than 30 creditors holding in excess of $100 billion in claims.