Lehman Brothers Holdings to hand out $14bn to its creditors

City A.M. Reporter
LEHMAN Brothers Holdings said yesterday it plans to distribute about $14.2bn (£9.4bn) to creditors early next month, as the company winds down following its emergence last year from bankruptcy protection.

The distribution, to be made on 4 April, will be Lehman’s third since it emerged from Chapter 11 protection in March 2012.

Lehman said the payout will increase total distributions to about $47.2bn (£31.3bn), with two-thirds going to third parties.

The company has said it hopes to distribute more than $65bn, on average about 21 cents on the dollar for allowed claims.

The company’s wind-down is expected to take several years. Lehman is still litigating against JP Morgan Chase, once its main clearing bank, and others to maximise potential payouts to creditors.