UPDATE 1-US seeks Lehman details, creditors mull own plan

* US trustee: Bankruptcy rules appear not to be followed

* Creditors including Morgan Stanley mull Lehman plan
(Revises first sentence; adds U.S. Trustee filing, dateline)

BANGALORE/NEW YORK, April 7 (Reuters) – A U.S. official who
oversees bankruptcies is seeking information about alternative
plans to reorganize Lehman Brothers Holdings Inc (LEHMQ.PK: Quote, Profile, Research) and
pay roughly $60 billion to the bank’s creditors.

Once Wall Street’s fourth-largest investment bank, Lehman
went bankrupt on Sept. 15, 2008, with $639 billion of assets.
The bankruptcy is by far the largest in U.S. history.

U.S. Trustee Tracy Hope Davis said in a filing that
procedures set up to help Lehman creditors decide whether to
support a reorganization “do not appear to completely adhere to
the requirements” of federal bankruptcy and other laws.

She asked Judge James Peck, who oversees Lehman’s
bankruptcy, to fix the procedures to let her fully participate,
and as necessary review documents filed under seal.

Changes are needed to streamline the process for creditors
and ensure that the public has appropriate access to court
documents, the trustee added.

Davis made her request the same day that creditors
including Morgan Stanley (MS.N: Quote, Profile, Research) and Silver Point Capital LP
said they were considering whether to file their own
reorganization plan for Lehman.

Two other proposed plans have already been filed: one by
Lehman, and one by bondholders including the hedge fund Paulson
& Co and the California Public Employees’ Retirement System.

Last week, the Paulson-CalPERS group asked Peck to consider
its reorganization plan for Lehman at the same time he
considers Lehman’s plan. [ID:nL3E7EU2BA] The plans differ in
how much various creditors would be paid.

In March, Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) said it was part
of a creditor group that might also file a reorganization plan
for Lehman.

The case is In re: Lehman Brothers Holdings Inc, U.S.
Bankruptcy Court, Southern District of New York, No. 08-13555.
(Reporting by Sakthi Prasad in Bangalore and Jonathan Stempel;
Editing by Will Waterman and Matthew Lewis)

UPDATE 1-US seeks Lehman details, creditors mull own plan