Lehman liquidation trustee to pay creditors additional $1.89 billion

By Kali Hays

New York, July 13 – Lehman Brothers Holdings Inc.’s liquidation trustee, James W. Giddens, asked the U.S. Bankruptcy Court for the Southern District of New York for authorization to make an additional interim distribution to general unsecured creditors totaling $1.89 billion, according to a Monday news release.

If the distribution is allowed, it will bring Lehman’s payout to general unsecured creditors to $7.8 billion. Total distributions to all creditors, including secured, priority and administrative creditors, will come to more than $8 billion.

Giddens said that the wind-down of the Lehman estate “continues in earnest” and that he and the estate “will continue to resolve outstanding issues so that all remaining available assets can be distributed.”

Further distributions to general creditors depend on the resolution of outstanding claims and “various ongoing litigations,” according to the release.

As previously reported, customer claims and secured, priority and administrative claims have all been satisfied in full.

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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