Lehman July 15

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Unsecured Creditors

1. Lehman Brothers Trustee Wants to Give Unsecureds $2 Billion

   Jul 14, 2015 | The Street

   By Kelsey Butler
   
   
   The trustee liquidating Lehman Brothers on Aug. 4 is set to make the case for handing out nearly $2 billion in additional funds to the former brokerage's unsecured creditors. Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan will preside over the hearing.

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Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Unsecured Creditors

1. Lehman Brothers Trustee Wants to Give Unsecureds $2 Billion

   Jul 14, 2015 | The Street

   By Kelsey Butler

   The trustee liquidating Lehman Brothers on Aug. 4 is set to make the case for handing out nearly $2 billion in additional funds to the former brokerage's unsecured creditors.

   Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan will preside over the hearing.
   

   James W. Giddens of Hughes Hubbard & Reed LLP on Monday, July 13, filed a motion in the New York court requesting permission to make the $1.89 billion distribution to general unsecured creditors. This would be the third distribution for this class and would bring the total recovery for unsecureds to $7.8 billion, or 35%.

   "This result, in the largest broker-dealer insolvency in history, could not have been anticipated in the dark days of the financial crisis when this liquidation began," the Monday motion said. "Indeed, at that time, a [100%] distribution to customers was in doubt, and even the prospect of a meaningful general unsecured distribution seemed remote. Today, [more than 111,000] customers have received [100%] distributions of over $106 billion in customer property; secured, administrative and priority claims have been paid in full; and general unsecured creditors have already received interim distributions of [27%]."

   In a Monday statement, Giddens said, "The wind-down of the estate continues in earnest, and we will continue to resolve outstanding issues so that all remaining available assets can be fully distributed."

   Any potential additional distribution will depend on the resolution of outstanding claims and the outcome of pending litigation, according to the statement.
   

   For full story:

   http://www.thestreet.com/story/13218621/1/lehman-brothers-trustee-wants-to-give-unsecureds-2-billion.html
   

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