It took six long years, but Nevada has finally recouped its loss of its $50 million investment made with the now-bankrupt investor and financial firm Lehman Brothers. Marshall, who was treasurer when Nevada purchased $50 million worth of A-rated bonds from Lehman in 2007, claims recovering the money has not been an easy task.
Now a symbol of Wall Street’s reckless behavior, the investment firm was a titan before the global economy was turned upside down from the housing market collapse resulting in the rise of defaults on mortgages.
The state sold its share of the bonds for $10 million in July of 2014. It recovered $13.6 million from the Lehman estate during the firm’s bankruptcy. And the remainder was restored through interest accrued from the bonds during the last 6 years.
Bryan Marsal of Alvarez and Marsal said the bankruptcy professionals in the case of Lehman Brothers had increased the value of the estate by around $50 billion in order to protect the assets worth in order to payback its debt. Much of Lehman’s financial and real estate assets would have sold at a sharp discount in the wake of the financial crisis, but have since recovered value under the post-bankruptcy management. Adding to the complexity of Lehman’s bankruptcy was the fact that it was unplanned, coming after the government declined to rescue the ailing firm.