U.S. Bankruptcy Court Judge James Peck late Thursday approved bidding procedures for Lehman Brothers Holdings Inc. to sell Neuberger Berman Investment Management in a bankruptcy auction, confirmed Neuberger spokesman Randall Whitestone.
Mr. Whitestone declined further comment.
The decision clears the way for the Lehmans investment management division which includes Neuberger to be acquired by private equity firms Bain Capital Partners and Hellman & Friedman. The firms announced Sept. 29 a proposal to buy the unit for $2.15 billion and form a new asset management company.
Private equity firm Carlyle Group and former Neuberger CEO Jeffrey Lane on Tuesday filed an objection to the Bain/Hellman bid in U.S. Bankruptcy Court in New York.
Lehman Brothers was forced into Chapter 11 bankruptcy protection on Sept. 15, the largest bankruptcy filing in U.S. history.