Lehman Bros likely to challenge parent-to-subsidiary guarantees

An apparent guarantee from Lehman Brothers Holdings Inc (LBHI) to its subsidiaries pledging to undertake their liabilities and obligations might be subject to a challenge from the parent company, say lawyers. If successful, LBHI could render billions of dollars worth of claims against the bankrupt estate invalid.

The pledge, known as the board-resolution guarantee, was drafted on June 9, 2005 and signed by then chief executive Richard Fuld and former board director John Macomber. It appears to