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James Giddens, the trustee, said distributions
would begin on Sept. 10 and cover 17 percent of the $27.2
billion of unsecured claims associated with the brokerage unit,
Lehman Brothers Inc.
About $3.47 billion will go to creditors whose claims have been
deemed valid, and another $1.15 billion will be set aside for
claims that are still pending.
The payout follows distributions of $105 billion to 111,000
former customers, who have been paid in full, and other
creditors whose claims had higher priority.
In a statement, Giddens said a payout to unsecured creditors had
been "far from certain" when the brokerage liquidation began
soon after Lehman went bankrupt on Sept. 15, 2008. More payments
to unsecured creditors are expected, he said.
Giddens' recovery efforts suffered a setback on Aug. 5 when a
federal appeals court said Barclays Plc was entitled to retain
$5.9 billion of disputed assets as part of its hurried purchase
of much of Lehman's brokerage unit.
Lehman was Wall Street's fourth-largest investment bank before
seeking Chapter 11 protection. It reported $639 billion of
assets, in what remains the largest U.S. bankruptcy.
The case is In re: Lehman Brothers Inc, U.S. Bankruptcy Court,
Southern District of New York, No. 08-01420.
(Reporting by Jonathan Stempel in New York; Editing by Lisa Von
Ahn)
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