Lehman agrees to reduce $34.19 million repurchase claim to $25 million

By Caroline Salls

Pittsburgh, March 23 - Lehman Brothers Holdings Inc. requested court approval to a settlement that reduces the company's $34.19 million loan repurchase and indemnification claim against Aegis Mortgage Corp., according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Lehman said it estimates that about 77% of the claim amount is based on loans it owns, while the remainder is based on loans held by Aurora Bank and some securitization trusts.

Based on a recent updated review of its losses related to fixed-rate and adjustable- rate residential mortgage loans that were acquired from Aegis, Lehman said it determined that its actual losses are less than the original claim amount.

The company said the review took into account repayments of loans, loan sales and foreclosure proceedings started for the properties securing the loans in question.

Under the settlement, Lehman will have a $25 million allowed general unsecured claim in Aegis' bankruptcy case.

Of this amount, Lehman said more than $19 million will go toward its claim and the rest toward the loans held by Aurora and the securitization trusts.

A hearing is scheduled for April 13.

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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