CREDITORS of the European arm of collapsed bank Lehman Brothers are set to share a £3.5bn payout, it was announced yesterday.
Administrators PwC said more than a thousand unsecured creditors will receive funds next week, taking the total repaid to date up to 68.5p in the pound.
The new dividend was made possible following the end to a number of long running disputes and follows an earlier payment to creditors of £2bn.
A third dividend is expected to be paid, with the administrators expressing optimism creditors could eventually be repaid in full. There is even the possibility that a surplus could be left over.
Lehman collapsed on 15 September 2008, pushing the financial crisis to a new level and becoming one of the biggest bankruptcy cases in history.
Almost five years later hundreds
of lawyers, accountants and Lehman staff are still working on winding up the bank’s affairs.
Many Lehman creditors have yet to agree their claims against the company. Funds have been retained by the administrators to pay the same 68.5 per cent dividend to them when they choose to settle.
“This very large second dividend is possible because we have been able to resolve a number of multi-billion pound disputes with affiliates, on favourable terms, and to reduce our creditor claims reserves through settlements with a number of major
trading counterparties,” said PwC partner Tony Lomas, who is leading the administration.
“The vast scale, complexity and value of Lehman Brothers International (Europe) has resulted in it taking a large team of PwC and Lehman staff more than four years to unlock some of the most difficult issues that have confronted us, but the fruits of that labour are beginning to appear,” he added yesterday.