The Bank of New York Mellon Corp. said it is on the creditors committee in the bankruptcy proceedings for Lehman Brothers Holdings Inc. because of its fiduciary role as a corporate trustee for Lehman debt issues. Lehman Brothers, a Wall Street fixture for 158 years whose debt rose to $613 billion, filed for protection from creditors under Chapter 11 of the federal bankruptcy code Monday.
A corporate trustee facilitates the payment of interest and principal between the issuer of debt and investors, in addition to providing other fiduciary services. BNY Mellon (NYSE:BK) said it will represent the interests of certain bondholders on the seven member committee. BNY Mellon said it has no outstanding loans to Lehman.
