Man Group enters transactions to sell Lehman claims for $456 million

By Caroline Salls

Pittsburgh, Nov. 16 - Man Group plc has entered into a series of transactions to sell the residual exposure to the Lehman estates that it acquired in 2011, according to a news release from Man Group subsidiary Man Strategic Holdings plc.

Under the transaction agreement with Hutchinson Investors LLC, which is managed by the Baupost Group, the Lehman claims will be sold for a total cash consideration of $456 million.

In addition, Man could receive up to $5 million more if overall recoveries by the buyer exceed specified future thresholds.

The Lehman claims were valued at $346 million as of June 30, the release said.

The proceeds will increase Man's regulatory capital surplus and further enhance its net cash position.

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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