Lehman announces plans to distribute $3 billion to creditors on Dec. 7

By Caroline Salls

Pittsburgh, Nov. 30 – Lehman Brothers Holdings Inc. plans to make a distribution on Dec. 7 to holders of allowed claims against the company and its various affiliated debtors, according to a news release.

Lehman’s said its 14th distribution to unsecured creditors under its confirmed Chapter 11 plan will total roughly $3 billion.

This distribution includes $2.3 billion of payments on account of third-party claims, which includes non-controlled affiliate claims, and $700 million of payments among the Lehman debtors and their controlled affiliates.

Cumulatively through this 14th distribution, Lehman said its total distributions to unsecured creditors will amount to about $122 billion, including $89.9 billion of payments on account of third-party claims, which includes non-controlled affiliate claims, and $32 billion of payments among the Lehman debtors and their controlled affiliates.

Lehman said the interim timing of this distribution was approved by the U.S. Bankruptcy Court for the Southern District of New York on Oct. 30 following a motion seeking to accelerate the distribution of proceeds from a settlement with Citibank, NA.

In accordance with the Chapter 11 plan, which was confirmed on Dec. 6, 2011, and subject to available funds, the Lehman debtors’ 15th distribution to creditors is expected to be made within five business days of March 30.

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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