Lehman files for bankruptcy; Merrill Lynch sold

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New York, Sep 15: Lehman Brothers Holdings Inc is likely to file for bankruptcy on Monday, Sep 15 night as it is unlikely that it will find a buyer. The company, which is ailing from $60 billion in real estate holdings said it would file for Chapter 11 as it is unable to find a suitor.

Meanwhile, Bank of America has agreed to purchase Merrill Lynch in an all-cash deal of $50 billion. While Merrill will get a new lease of life, Lehman's unsecured creditors are likely to receive around 60-80 cents to the dollar, agencies reported. This has resulted in turmoil across Asian markets on Monday morning. Most Asian markets are closed today. Among the markets that are open, India is the worst-hit with the Sensex losing 5.5 pc in early trades. Taiwan is down 4.1 pc, while Singapore has lost 2.9 pc.

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