Lehman’s bankruptcy update…

Sometime today (it’s not clear exactly when) representatives of Lehman Brothers (LEHMQ) will appear in Bankruptcy Court. Their purpose? To provide an update on Lehman’s progress under the watchful eyes of Alvarez & Marsal, which as we footnoted here is getting paid as much as $850 an hour for its work on Lehman. While we won’t physically be in the court today, an 8K filed this morning with this 28-page Powerpoint update called “The State of the Estate” is the next best thing.

We found page 21 particularly interesting, what with its list of 12 corporate-owned jets (including four 737s!) and 1 helicopter that are currently in the process of being sold, including a GIV that went for $21 million at the end of December. The list puts the total value of Lehman-owned planes at $164 million and so far, they’ve made $68 million on the sales. On the same page, Lehman’s extensive art collection is valued at $30 million.

Page 24, which lists A&M’s challenges for resolving the Lehman mess, is also pretty interesting. The top challenge is the “very depressed and illiquid market”. There’s also some interesting numbers on open trades and derivatives on pgs. 18 and 19 and a discussion of forensic work that’s being done to “reconstruct the actions of the Lehman clearing banks” (JP Morgan (JPM), Bank of America (BA) and Citibank (C)) in the time period leading up to the filing.”

At the end of the filing, A&M states that the “objective is to position the Debtors for exit from bankruptcy in 18-24 months.” Anyone want to take that bet?

UPDATE: Here’s the AP’s take. They were at the hearing and the comments by the judge at the end of the story are interesting indeed. “”I am deeply concerned about the overall costs and expenses of this case,” Judge James Peck said. “Just because the case is large, does not mean the case should be viewed as a blank check for professionals.”

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