Lehman granted court approval of Aegis Mortgage claim settlement

By Caroline Salls

Pittsburgh, April 21 - Lehman Brothers Holdings Inc. obtained court approval of a settlement that reduces the company's $34.19 million loan repurchase and indemnification claim against Aegis Mortgage Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Lehman said it estimates that about 77% of the claim amount is based on loans it owns, while the remainder is based on loans held by Aurora Bank and some securitization trusts.

Based on a recent updated review of its losses related to fixed-rate and adjustable-rate residential mortgage loans that were acquired from Aegis, Lehman said it determined that its actual losses are less than the original claim amount.

Under the settlement, Lehman will have a $25 million allowed general unsecured claim in Aegis' bankruptcy case.

Of this amount, Lehman said more than $19 million will go toward its claim and the rest toward the loans held by Aurora and the securitization trusts.

New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

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