Lehman Brothers Asia to Pay $1.5 Billion in Dividends to Creditors in 2012

Lehman Brothers Asia Holdings Ltd. said it planned to pay a second interim dividend of $1.5 billion, or 12 percent of claims, to creditors of the former funding entity of Lehman’s Asia Pacific business.

The dividend will be paid early next year and creditors may recover 37.2 percent to 53.5 percent of their claims, according to a statement from liquidator Patrick Cowley of KPMG International’s China affiliate today. The first interim dividend of five percent was paid earlier this year, it said.

A U.S. federal judge earlier this month approved Lehman Brothers Holdings Inc. (LEHMQ)’s plan to sell its remaining assets over the next three years to raise $65 billion. The defunct securities firm, which filed for the biggest bankruptcy in U.S. history, said it would begin distributing some of its $23 billion in available cash to creditors.

The dividend announced today will be funded by a recovery of $1.2 billion from a Japanese unit that purchased portfolios of non-performing real estate loans, Cowley said in the statement. Lehman’s successful claim, over the opposition of a Japanese creditor, was resolved by the country’s Supreme Court, the liquidator said.

In August, Lehman said in the U.S. that it settled $20 billion of intercompany claims with liquidators for Lehman Hong Kong. The Hong Kong liquidators said they reached settlements in relation to $30 billion of intercompany claims with Lehman affiliates in New York and London.

Lehman, once the fourth-largest investment bank, collapsed in September 2008 with assets of $639 billion.

To contact the reporter on this story: Debra Mao in Hong Kong at dmao5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net

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