Richard Free's List: Economy

• Chapter 11, Title 11, United States Code
• When a troubled business is unable to service its debt or pay its creditors
• In chapter 7, the business ceases operations and a trustee sells all of its assets and distributes the proceeds to its creditors.
• A chapter 11 filing is usually an attempt to stay in business
• In enacting chapter 11 of the Bankruptcy code,
• the value of a business is greater if sold or reorganized as a going concern than the value of the sum of its parts if the business's assets were to be sold off individually
• Lehman Brothers Holdings, Inc. 9/15/2008 $639,000,000,000 (approximate) NY-S

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• Lehman Brothers might be edging closer to a bankruptcy filing, with several reports that it has hired Weil, Gotshal & Manges, the law firm that handled the collapse of investment firm Drexel Burnham Lambert in 1990.

• Why wouldn’t Lehman borrow? For one thing, it may not need to. As in the case of Fannie Mae and Freddie Mac, one of its key problems is with capital and not short-term funding.
• Taking a discount window loan while everyone is watching for it — and expecting it — might create a new set of confidence problems.

• Emergency crews surround a Delta commuter plane after it slid off a runway in Cleveland in February 2007.

• This week has marked one of the most difficult periods in the Lehman Brothers' storied 158-year history.