Sept. 25 (Bloomberg) -- Lehman Brothers Holdings Inc., which filed the biggest U.S. bankruptcy four years ago, set a second payment to creditors of $10.2 billion, or half of the amount it paid in April as a first installment on its debt.
Overseen by a new board since leaving bankruptcy in March, the defunct investment bank plans semi-annual distributions, including a second payment Oct. 1 and a third distribution around March 30, Lehman said in a statement today. Its first payment totaled $22.5 billion.
Lehman has said it intends to raise $53 billion through 2016 or so, to pay an average of 18 cents on the dollar on final claims of $300 billion. The company filed for bankruptcy in September 2008 listing debt of $613 billion.
The second payment will go to outside creditors as well as affiliates owed money, Lehman said in the statement. It also will pay $328 million to holders of claims it recently approved, who would otherwise have received the money in April.
Lehman, run by Chief Executive Officer Richard Fuld when its collapse helped bring on the worst economic slump since the Great Depression, settled a fight with creditors in a payment plan that allotted more money to derivatives claimants including Goldman Sachs Group Inc. and less to bondholders such as Paulson & Co. Both groups proposed rival plans to pay Lehman’s debt.
Lehman failed because of too much debt and risky real estate investments, according to a bankruptcy examiner’s report.
The bankruptcy case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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