Lehman obtains court approval of its pension payment settlement

By Rebecca Melvin

New York, June 3 - Lehman Brothers Holdings Inc. received court approval of its Pension Benefit Guaranty Corp. settlement, under which Lehman's retirement plan will be terminated in exchange for a $127.6 million payment for plan participants.

In exchange for the $127.6 million payment plus interest, the PBGC has agreed to release its pension plan claims, including its claims for the unfunded plan benefit liabilities and premiums.

Judge James M. Peck signed the order following a hearing Wednesday at the U.S. Bankruptcy Court for the Southern District of New York.

The settlement agreement had one objection that was overruled, and the unsecured creditors committee supported the arrangement

New York-based Lehman Brothers Holdings was the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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