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Lehman Brothers Sets Third Creditor Payment for April 4

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Feb. 19 (Bloomberg) -- Lehman Brothers Holdings Inc. set its third payment to creditors for April 4 after getting a judge’s approval to abandon a previously fixed schedule for returning money.

The record date for the latest payment to holders of claims against the defunct investment bank is Feb. 23, Lehman said in a filing in U.S. Bankruptcy Court in Manhattan on Feb. 15. It didn’t say how much it would pay out.

Lehman, which is still liquidating and trying to cut claims after exiting bankruptcy court protection last year, has so far paid creditors about 9 cents on the dollar, or half of what it expects to pay by about 2016. It said in December that it raised $3.9 billion for creditors in the quarter ended Sept. 30 and another $1.6 billion in October and November, while its $6.5 billion sale of apartment owner Archstone was due to close by March 26.

Last week, as part of an $8.6 billion fight with JPMorgan Chase & Co., New York-based Lehman said it would seek international judicial assistance in forcing Bruno Iksil, the former JPMorgan trader known as the London Whale, to answer questions about losses Lehman says spurred unnecessary collateral calls that helped force it into bankruptcy.

Lehman, which is running the most expensive bankruptcy in history, has paid managers and advisers more than $2 billion since September 2008. Creditors include Goldman Sachs Group Inc., UBS AG, the New York Giants professional football team and Abu Dhabi Investment Authority.

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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