Why Lehman’s Bankruptcy Exit Is Good News for OfficeMax
Brian Harper submits:
Recent reports that Lehman Brothers (LEHMQ.PK) is close to exiting bankruptcy have implications for a lot of companies, not least of which is OfficeMax (OMX).
Here are the gritty details. Officemax retains asset-backed debt on its balance sheet of $1.46 bilion, half of which was guaranteed by Lehman prior to the investment bank’s bankrputcy. This debt showed up after Officemax sold its Boise Cascade timber operations to private equity in 2005. The debt is entirely non-recourse, and restricted to the timber note assets which also stayed on OMX’s balance sheet.
Investing, Long Term Investment, stock market | admin March 17, 2010
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