Lehman Creditors Mull Reorg Plan: Report

Lehman Brothers' creditors may be working on their own reorganization plan.
By Maria Woehr ,

NEW YORK (

TheStreet

) -- Creditors of

Lehman Brothers Holdings

may be working on their own reorganization plan that would challenge the one filed by the company in March.

The new plan, created by

Paulson & Co.

and

California Public Employees' Retirement System

(CalPers) would

distribute

the failed investment bank's assets in a more equal fashion, according to

Reuters

.

Paulson and CalPers are opposed to the restructuring proposal filed with the U.S. Bankruptcy Court in March because it would distribute more of the estimated $57.5 billion to large bank creditors than other creditors, the report said.

Under Lehman's plan, unsecured creditors would see returns of 10.4 cents to 44.2 cents on the dollar, general unsecured creditors of the holding company would get 14.7 cents for every dollar and creditors for the derivatives and commercial paper units would be able to receive 21.9 to 44.2 cents for each dollar, according to

Reuters

.

Lehman has also reportedly been working on a new reorganization plan that would take the creditors concerns into account.

--Written by Maria Woehr in New York.

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