Lehman's Creditor Payout Announced
In an announcement last Wednesday, Lehman Brothers Holdings Inc said it is planning to distribute nearly US$14.2 billion to its creditors by next month. This comes as the company winds up operations after its exit from bankruptcy protection.
The distribution is scheduled to be done starting April 4 and would be the company's third run after its emergence from Chapter 11 protection last March 6, 2012. The payout increased total distributions to US$47.2 billion, with two thirds paid out to third parties. The company is set to parcel out US$65 billion or US$0.21 on the dollar for all its allowed claims.
The payout this April would include US$9.4 billion to third party creditors and their affiliates, nearly US$4.4 billion to other Lehman debtors and affiliates and another US$370 million for deemed valid claims since its last distribution in October 1, 2012.
Before the 2008 crisis, Lehman was Wall Street's fourth biggest investment bank but filed for Chapter 11 protection last September 2008, which was the precursor of the recession felt until today.
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