The Australian creditors of Lehman Brothers Holdings Inc. had approved an insurance payment plan. This would allow the company to get back around USD48 million worth of investment losses.

The US insurers agreed to provide USD45 million while an Australian insurer had agreed to give AUD3 million under the proposal. This was according to the PPB Advisory, liquidators of Lehman Brothers Australia Ltd. in an emailed statement today. The payout was on the condition that creditors must be free from any future claims from insurers.

In a statement PPB said, "The settlement avoids protracted and risky litigation in a foreign jurisdiction."

The approved insurance plan would also allow the liquidators to move on with the discussions for a settlement over a class action lawsuit, said PPB Advisory. Last year, the Lehman unit was found liable last year for the losses incurred by three Australian towns that had bought failed securities.