Lehman Mar 27

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Creditor Distribution

1. Lehman to Pay Out Additional $7.6 Billion to Creditors

   Mar 26, 2015 | The Wall Street Journal

   By Patrick Fitzgerald
   
   
   The team winding down Lehman Brothers Holdings Inc. said Thursday it would be paying $7.6 billion to creditors next week, more than six years after the investment bank’s collapse triggered the financial crisis. The bulk of the latest payout, some $6.3 billion, is earmarked for third-party claimants, which include Lehman affiliates that...

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

Creditor Distribution

1. Lehman to Pay Out Additional $7.6 Billion to Creditors

   Mar 26, 2015 | The Wall Street Journal

   By Patrick Fitzgerald

   The team winding down Lehman Brothers Holdings Inc. said Thursday it would be paying $7.6 billion to creditors next week, more than six years after the investment bank’s collapse triggered the financial crisis.

   The bulk of the latest payout, some $6.3 billion, is earmarked for third-party claimants, which include Lehman affiliates that are being wound down separately from the New York-based holding company.

   Lehman, which is in liquidation, said that its general unsecured creditors, who were estimated to receive less than 20 cents on the dollar when Lehman’s bankruptcy plan went into effect in early 2012, will have received nearly $100 billion, or more than 32 cents on the dollar, after the next distribution is completed. That is up from about 29 cents when Lehman made its sixth distribution last year.

   The Chapter 11 payment plan for Lehman Brothers Holdings treats similarly situated creditors of its subsidiaries better than those of the parent. For example, general unsecured creditors of Lehman’s Specialty Finance unit, the heart of the failed investment bank’s derivatives business, have so far recovered more than 34 cents on the dollar, though they are limited to how much they can claim.

   General unsecured creditors of Lehman’s commodities unit have received about 75 cents on the dollar, according to papers filed Thursday in U.S. Bankruptcy Court in New York.

   Those holding bonds issued by the Lehman parent have now recovered about 35 cents on the dollar, up from an estimated 21.1 cents when Lehman’s plan became effective in 2012.

   Lehman, once the nation’s fourth-largest investment bank, collapsed into the largest bankruptcy ever in September 2008.

   After the bank failed, some creditors bailed out, not wanting to wait for their money or to take a chance they wouldn’t get paid at all. Hedge funds were willing buyers of their claims, betting they would gain in value after the initial panic subsided...

   For full story:

   http://www.wsj.com/articles/lehman-to-pay-out-additional-7-6-billion-to-creditors-1427390417
   

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