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Lehman Aug 3

Next Week in Bankruptcy
Jul 31, 2015 | The Wall Street Journal - Bankruptcy Beat
By Tom Corrigan

On Tuesday in Manhattan, the trustee unwinding Lehman Brothers Inc. will ask a bankruptcy judge for permission to pay nearly $2 billion to the defunct brokerage’s unsecured creditors, which would be the third such distribution since he paid off the brokerage’s customers.

Next Week in Bankruptcy

Jul 31, 2015 | The Wall Street Journal - Bankruptcy Beat

By Tom Corrigan

On Tuesday in Manhattan, the trustee unwinding Lehman Brothers Inc. will ask a bankruptcy judge for permission to pay nearly $2 billion to the defunct brokerage’s unsecured creditors, which would be the third such distribution since he paid off the brokerage’s customers.
If approved by Judge Shelley Chapman, that would bring the total amount returned to creditors to more than $8 billion, a recovery of about 35 cents on the dollar. Combined with distributions made to customers, the total amount recovered in the brokerage’s liquidation would be about $114 billion.
In court papers, lawyers for trustee James W. Giddens said that after the third distribution, further payouts would be contingent on winning or settling pending litigation, which would free up funds currently on reserve.
Mr. Giddens began paying back creditors—former employees, pension funds, banks and investment firms with unsecured claims against the brokerage—last summer after paying back the brokerage’s customers.
The distinction between “customer” and “creditor” is a crucial one in the Lehman case. Customers get 100% of their money back, while unsecured creditors get much less...
For full story:
http://blogs.wsj.com/bankruptcy/2015/07/31/next-week-in-bankruptcy-11/

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