Lehman Brothers, SIPA trustee agree to unclaimed funds allocation

By Caroline Salls

Pittsburgh, July 27 - Lehman Brothers Holdings Inc. and the trustee for the Securities Investor Protection Act (SIPA) liquidation of Lehman Brothers Inc. requested court approval of an agreement for the allocation and distribution of $14.55 million in unclaimed funds, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The funds were deposited by the New York State Comptroller Office of Unclaimed Funds to be claimed by Lehman Brothers Holdings and the SIPA trustee on behalf of Lehman Brothers Inc.

Under the agreement, $13.16 million of the unclaimed funds will go to Lehman Brothers Inc. and $1.32 million to Lehman Brothers Holdings.

The parties have also agreed to a mechanism to eliminate the need for future court intervention related to potential additional distributions of unclaimed funds, the motion said.

A hearing is scheduled for Aug. 17.

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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