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Lehman trustee secures court OK for $2.2 billion interim distribution
By Caroline Salls
Pittsburgh, Feb. 19 – Lehman Brothers Inc. Securities Investor Protection Act (SIPA) liquidation trustee James W. Giddens received bankruptcy court approval to initiate a $2.2 billion second interim distribution to unsecured general creditors, according to a news release.
The trustee said he allocated $2.2 billion for allowed unsecured general claims in January.
“We are moving ahead with our second multi-billion distribution to unsecured general creditors as we continue winding down the LBI estate,” Giddens said in the release.
“We will work toward additional distributions while maintaining appropriate reserves and protecting claimants’ interests and due process rights.”
Distributions are expected to begin the second week of March, pending final court orders.
Claimants include former employees, pension funds, institutions, banks and Lehman affiliates.
According to the release, the trustee has distributed more than $3.7 billion to Lehman’s creditors since July 2014. With a second interim distribution of $2.2 billion, unsecured general creditors will achieve a roughly 27% payout on allowed claims.
In total, the company’s customers have received more than $106 billion, fully satisfying 111,000 customer claims. Secured, priority, and administrative creditors have also received 100% distributions, the release said.
Together, Giddens said the customer and general creditor distributions represent the largest distributions across the worldwide Lehman insolvency proceedings.
The trustee said his principal focus is now to resolve remaining claims and make further general creditor distributions in order to close the estate as quickly as possible.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company emerged from bankruptcy on March 6, 2012.
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