IT started as a humble dry-goods store and cotton trader founded by Jewish immigrants in Alabama, and grew so quickly within three decades of founding that it had the wherewithal to help finance the state's post-Civil War reconstruction. In modern times, it was better known for being the fourth largest investment bank in the United States. But Lehman Brothers, 158 years old when it spectacularly collapsed in 2008, gained most notoriety for its pivotal role in the unfolding of the global financial crisis.

The Lehman Brothers insolvency is still the largest in US history, with a staggering US$768 billion debt owed against US$639 billion assets owned at that time. Despite that deficit, hundreds of unsecured creditors (those whose debts are not guaranteed by assets) were repaid between 20 and 40 cents per dollar of debt - versus the norm of a few cents per dollar.

The answer was insolvency mediation. The US Bankruptcy Court permitted Lehman Brothers to undergo non-binding mediation with its creditors, which allowed the firm to collect on debts owed in order to repay some unsecured debtors.