On Sept 15, 2008,Lehman Brothers Holdings Inc., fied a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy. (info from my etrade account under quotes and research). 48 hours later, on Sept. 17, 2008, Barclays, early in the morning agreed a $1.75billion deal to buy the core business of Lehman Brothers. At htis time, Lehman listed assets of $639 Billion dollars, making it the biggest bankruptcy filing ever, 10 times the size of the energy firm Enron when it went bust in late 2001. (info found on www.guardian.co.uk)
On March 01,2010, Lehman Sees Huge Volume Uptick, (by Dan Freed on www.street.com) "Shares of Lehman, which along with tohose of other so-called zombie companies such as Washington Mutual(WAMUQ.PK), widely thout worthless, saw a flurry of activity in August and September, as investors seemed intent on bidding up every failed company in sight.
Why do these companies fail??? I don't understand, but if the employees and managers know about this, it's easy to bring them back, buy the shares back. After they emerge from chapter 11, those shares need to be tendered. For example, if you buy Coca-Cola company with cash, that means you also buy all their debt and shares along with that. If you are new owner Boca-Bola, then you must reissue new shares to the existing shareholders but under a different name Boca-Bola.
