Paulson & Company has secured about a $554 million profit before legal fees on the value of bonds bought in Lehman Brothers, Financial Times reports. The hedge fund had made about 2,000 trades in Lehman bonds on the day the bank filed for bankruptcy.
As per the deal, holders of Lehman holding company bonds will get 21.1 cents for each dollar in face value, as compared to the 17.4 cents initially proposed. The profit will be realized by a settlement between the bank and its creditors.
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