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Capstone could be in line for MBO

The management of Lehman Brothers’ mortgage administrator subsidiary company Capstone Mortgage Services could be planning a buyout of the firm, Money Marketing understands.

Lehman’s administrators PricewaterhouseCoopers are understood to be looking to restructure the business so its management gain a bigger stake in running the firm, fuelling speculation that the management team are aiming to achieve a buyout.

A PricewaterhouseCoopers spokeswoman says: “The Capstone management team has been retained to run and potentially grow the business. There is no outside private equity support.”

But the spokeswoman would not comment on speculation of an MBO.

It was first suggested that Capstone could be sold in September 2008 following the winding-up order against Lehman Brothers.

PricewaterhouseCoopers put Lehman’s sub-prime mortgage book up for sale in January 2009 after it reportedly failed to deleverage the Preferred Mortgages and SPML mortgage books.

Lehman Brothers went into administration in September 2008 in the biggest bankruptcy in US history.


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