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Lehman To Pay $10.5B In Second Distribution To Creditors

 September 25, 2012 03:44 PM

(By Balachander) Lehman Brothers Holdings Inc. said it will pay a further $10.5 billion to creditors.

Lehman, which defaulted in September 2008, has paid $22.5 billion in its initial distribution to creditors in April 2012 and the second distribution will bring total repayment to about $33 billion.

In addition, Lehman will pay an additional $328 million to holders on recently allowed claims, representing the payment those claims would have received had those claims been allowed at the time of the initial distribution, Lehman said.

The defunct financial giant said the second distribution does not include an additional $1.7 billion of cash for disputed claims.

Lehman, once the nation's fourth-largest investment bank, exited from Chapter 11 bankruptcy in March and started repaying its creditors the subsequent month. Lehman's downfall helped trigger the global financial crisis in 2008.

Lehman anticipates making a third distribution around March 30, 2013.


Rich
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