Lehman wins OK to create asset management company

NEW YORK (Reuters) - Lehman Brothers Holdings Inc (LEHMQ.PK), which filed the largest bankruptcy in U.S. history, won a federal bankruptcy judge's approval on Thursday to create a new asset management company.

The creation of the company, known as LAMCO, will enable Lehman to unwind some of its assets over a longer period of time, potentially allowing it to make more money.

"I've never seen anything quite like this," U.S. Bankruptcy Judge James Peck said at a court hearing.

Some Lehman creditors had objected to LAMCO's creation, but resolved their disagreements prior to the hearing.

Lehman filed for Chapter 11 protection from creditors on September 15, 2008. It is gradually liquidating assets to pay creditors.

Much of Lehman's North American operations were taken over by Barclays Plc (BARC.L) in the immediate aftermath of the bankruptcy filing.

The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.