Lehman Brothers Inc. Trustee Sets Distribution Fund of $4.6 Billion for
Unsecured General Creditors
First Interim Distribution on Allowed Claims Planned for September
NEW YORK, Aug. 15, 2014
NEW YORK, Aug. 15, 2014 /PRNewswire-USNewswire/ -- James W. Giddens, Trustee
for the liquidation of Lehman Brothers Inc. (LBI) under the Securities
Investor Protection Act, today filed a notice regarding the first interim
distribution to unsecured general creditors with allowed claims, setting the
fund for the distribution at $4.6 billion. This first interim distribution to
unsecured general creditors follows the ability to satisfy 100 percent of all
customer claims and secured and priority general creditor claims.
Distributions to unsecured general creditors will begin on or about September
"This first interim distribution to unsecured general creditors totaling
billions of dollars is a milestone in administering and winding down the LBI
estate," Giddens said."That such a distribution is even possible represents
an extraordinary achievement that was far from certain when the liquidation
began. We expect additional distributions to unsecured general creditors,
while maintaining appropriate reserves and protecting claimants' interests and
due process rights."
Taking into account required reserves, LBI general estate assets available for
distribution total $4.7 billion. Of this amount, the Trustee has set a fund of
$4.6 billion, or approximately 97 percent of the total available, for the
first interim distribution. The Trustee has allocated approximately $3.5
billion for allowed unsecured general creditor claims and approximately $1.1
billion for still pending unsecured general creditor claims. These allocations
represent 17 percent of the total amount of these claims.
At the outset of the LBI liquidation, the extent of customer distributions was
unknown and the potential for a general estate was in doubt. Customer claims
have been paid in full, and now with the planned first interim distribution,
more than $110 billion will have been distributed from the LBI estate to
customers and general creditors. This represents the largest distribution
across the worldwide Lehman insolvency proceedings, and it would not have been
possible without the assistance of the Securities Investor Protection
Corporation and the Securities and Exchange Commission, and the oversight of
United States Bankruptcy Court judges, the Honorable James M. Peck and the
Honorable Shelley C. Chapman.
SOURCE Office of the Trustee for the Liquidation of Lehman Brothers Inc.
Contact: Jake Sargent, email@example.com, 202-569-5086
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