Lehman Said to Possibly Face Rival Payout Plan by Paulson, Funds

Bloomberg – Lehman Brothers Holdings Inc. may face a proposal from creditors including hedge fund Paulson & Co. for distributing an estimated $57.5 billion more equally than provided for in its own payout plan, according to a person familiar with the matter.

The competing plan may be filed as early as this week, said a second person familiar with the matter. Lehman rose as much as 4 percent on the news yesterday.

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