Bankrupt Lehman seeks more debt of Park Ave building

The investment bank already has a $437 million stake in the building, which is located on a valuable stretch of Park Avenue, according to court documents released on Monday.

Lehman, which collapsed in September 2008, has filed a motion in New York bankruptcy court to purchase the B Note of a senior debt facility, using estate funds.

"Making a new investment in 237 Park by purchasing the B Note from the seller has significant upside for Lehman Brothers Holdings and represents the best means of protecting LBHI's current investment ... which could potentially be wiped out if a party other than LBHI acquires the B Note and pursues a foreclosure of the B Note," the company wrote in its motion to U.S. Bankruptcy Judge James Peck at the New York bankruptcy court.

Lehman had originated some $1.23 billion in loans to finance the purchase of the 21-storey building in May 2007.

"LBHI in consultation with the official committee of unsecured creditors will seek to purchase the B Note at the most favorable terms possible," said Lehman. "However acquisition of the B Note even at its par value represents a valuable investment for LBHI and its estate."

The documents did not give more details about the possible value. A call to Lehman's attorney at Weil Gotshal was directed to another Lehman representative, who was not immediately available to comment.

Broadway Partners owns the building, which occupies the entire block-front on Park Ave between 45th and 46th streets.

(Reporting by Chelsea Emery, editing by Matthew Lewis)

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