Lehman Brothers to distribute $2.8 billion to claimholders, debtors

By Sheri Kasprzak

New York, June 9 – Lehman Brothers Holdings Inc. said it will distribute $2.8 billion in recovery to holders of allowed claims and its affiliated debtors, according to a statement from the company.

This will be the tenth distribution under Lehman’s Chapter 11 plan and will include $2 billion in payments on account of third-party claims and an $800 million payment among the Lehman debtors and their controlled affiliates.

Cumulatively, the company distributed $109.8 billion to unsecured creditors, including $80.5 billion of third-party claim payments and $29.3 billion of payments among the Lehman debtors and their controlled affiliates.

The interim timing of the distribution was approved by the U.S. Bankruptcy Court for the Southern District of New York on May 26, which sought to advance the date in order to mitigate the negative timing consequences of a delay in the effective date of a substantial settlement with JPMorgan Chase Bank, NA. The delay was caused by an objection and a related appeal filed by a pro se litigant. This distribution includes a $1,496,000,000 plan distribution related to the JPMorgan settlement.

The company’s eleventh distribution to its creditors should be made within five business days of Sept. 30.

Based in New York, Lehman Brothers Holdings handles all bankruptcy-related actions from the former Lehman Brothers Inc., a financial services company.

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