Lehman injunction to block Zell denied

TRD NEW YORK /
Jan.January 09, 2012 12:00 PM

Lehman Brothers Holdings’ bid to keep Sam Zell’s Equity Residential from purchasing a 25.6 percent stake in apartment company Archstone met its first hurdle, Bloomberg News reported, when a bankruptcy judge rejected Lehman’s preliminary injunction Friday. Equity Residential, which hopes to buy the stake from Bank of America and Barclays PLC, is allowed to exercise its option to purchase the stake, the ruling says.

Lehman is “cash-rich,” U.S. bankruptcy Judge James Peck said. Lehman has said it wants to sell Archstone for $6 billion to help pay creditors, but first needs to gain control by buying the banks’ stakes. Zell’s Chicago-based company argued it had spent money pursuing the deal, and should not be blocked from bidding. The judge agreed.

The judge also said that on Nov. 30, Lehman had $27.2 billion of cash and investments, referring to filings. He expects Equity to bid about $1.4 billion for the stake.

The rejection of the injunction has no effect on the merits of Lehman’s case, Bloomberg reported. [Bloomberg]


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

From left: Keller Williams NYC’s Efraim Tessler and Raphael Sitruk, Yitzchak Tessler and 172 Madison Avenue (Credit: 172 Avenue, NCM USA)

Now just $76 million: “Le Penthouse” gets le price cut

From left: State Sen. James Gaughran, Senate Majority Leader Andrea Stewart-Cousins, Assemblywoman Kimberly Jean-Pierre (Credit: Getty Images)

L.I. brokers subpoenaed to testify in housing discrimination probe

Softbank CEO Masayoshi Son and Elliott Management Corp. CEO Paul Singer (Credit: Getty Images)

Post-WeWork debacle, SoftBank will map out strategy to investors

133-25 37th Avenue in Flushing

Developer Gary Tsan buys Flushing property for $60M

Brookfield's Ric Clark (Credit: Getty Images)

Brookfield’s Ric Clark steps back from day-to-day role

arrow_forward_ios
Loading...