LEHMAN Brothers will not turn its asset management unit into a long-term business after creditors of the bankrupt investment bank objected.
Lamco, or the Legacy Asset Management Co, instead will continue on its path to liquidate Lehman assets over the next few years to pay back creditors, and will no longer look for a partner to manage the business, chief executive Bryan Marsal said. “Under the current governance, as long as it is in bankruptcy, a Lamco partnership will not be pursued,” said Marsal, who is overseeing the world’s biggest bankruptcy.
Marsal presented the possibility of a partnership between Lamco and another firm at a creditor’s meeting earlier this year, saying the arrangement would strengthen the asset-management business.
Lehman started looking for a partner for Lamco after its creation was approved by a Manhattan bankruptcy court in April 2010.