San Mateo County wants back its $155 million from Lehman

The ripple effects from the Lehman Brothers bankruptcy back in Spring of 2008 are still roiling municipalities.  In this case San Mateo County  is going to Congress to recover its lost funds but all told, state and local governments lost $1.7 billion from the demise of the giant investment bank.

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Lehman bankruptcy: still creating shockwaves

Tax officials in Austin Texas are concerned that the nearly $18 million that Lehman Brothers and others owe on their ownership stake in ten Austin buildings.  Its seems that the other owners are embroiled in lawsuits with the bankrupt investment bank to get them to pay their fair share but that the money is due now and the lawsuit, not surprisingly, hasn’t resolved the issue.  $9.5 million of this money owed to the Austin school district.

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Lehman Bankruptcy: Austin Property Company Wants $

Here is the language from the Thomas Properties CEO:

“”Through this motion, we are seeking to compel Lehman Brothers to accept and honor its obligation to fund the $100 million revolving credit facility.”

So what’s really going on?  Its not like they will get their $100 million from the very bankruptcy investment bank.  Looks like Thomas Properties wants out of the deal to make other arrangements but they can’t until the court says, forgetaboutit.  Just my guess.

Lehman Bros. Bad for Municipalites

Lehman Bros. bust hit San Mateo County hard

Used funds for paying salaries and making payment on facilities.  Like California municipalities don’t have it bad enough!