A GBP3.5 billion or US$5.5 billion payout next week would be shared by more than 1,000 creditors of Lehman Brothers Europe. This was confirmed by the firm's administrators last Thursday.

This payout would mean recovery for some of the creditors of one of the largest banking collapses that was the heart of the financial crisis of 2008. The recovery is at US$0.685 to the dollar invested.

The joint administrators for Lehman Brothers, PricewaterhouseCooper, had previously announced a dividend of 43.3% of what were owed to creditors. This is the second one of the nature done so far and this would be paid out by June 28.

The administrators of the largest bank failure in history reported in their latest progress audit last April that the unsecured creditors fo the bank can be paid in full and there can even be surplus funds after full payment has been made.

According to Tony Lomas, the lead administrator of LBIE and currently a partner at PwC, had said the latest payout comes after resolutions were reached on a number of disputes costing multi-billion pounds. There was also a reduction in creditor claims after settlements have been finalized with major trading counterparts.