Lehman Brothers, the financial firm that fell into chapter 11 bankruptcy during the economic collapse in 2008, has recently been granted permission to remove their asset holdings in Delta Topco from bankruptcy proceedings. Delta Topco is the parent company in charge of running the Formula 1 racing sport and has recently posted huge profits and with Lehman Brothers holding a 15.3% stake in the company they have experienced a 550% return on their investment. The largest shareholder of Delta Topco, CVC, attempted to seize Lehman Brother’s 15.3% stake after the company entered bankruptcy and has made several offers to buy out the remaining shares but the financial firm has not agreed to a sale. In court, Lehman Brothers argued that they should not be forced to sell their shares to CVC at a “fair market value” because the shares are worth more to an outside buyer because of the relative power those shares hold within Formula 1. The 15.3% share held by Lehman brothers is the third largest in the company which puts them in a strong position in terms of voting power and dividend payout. As for Lehman Brothers, continuing to pursue outside options for the sale of their stake will cause the current shareholders to continue increasing their bids until a price can be agreed upon or an outside buyer is found. Eventually, acceptable terms will be found and the disgraced financial firm will be able to use the cash generated to pay down their existing debts. The most recent valuation puts the shares at an estimated $1.5 Billion but the value could be much higher for an existing shareholder to strengthen their position within the company.
Forbes.com has posted an article with more detailed information about the subject.