Lehman: Ninth distribution won’t include JPMorgan settlement proceeds

By Caroline Salls

Pittsburgh, March 28 – Lehman Brothers Holdings Inc. said a ninth distribution scheduled to begin on March 31 will not include the proceeds from a recently approved settlement with JPMorgan Chase e Bank, NA.

According to a company news release, the settlement approved on Feb. 8 by the U.S. Bankruptcy Court for the Southern District of New York calls for JPMorgan to pay $1.42 billion to Lehman and its affiliates and release $76.5 million of restricted funds.

After the settlement was approved by the court, Lehman said a “lone objector and pro se litigant” appealed the order to the U.S. District Court for the Southern District of New York.

Lehman said the district court ordered a dismissal of the appeal on March 11, but the objector also appealed that order.

On March 18, 2016, Lehman asked the Court of Appeals to expedite dismissal of the appeal. As of Monday’ the appeals court had not ruled on the motion, the release said.

New York-based Lehman Brothers was the fourth-largest investment bank in the United States. The company emerged from bankruptcy on March 6, 2012.

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