Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Lehman Set to Pay Creditors $14.2 Billion on April 4

Lehman Brothers Holdings Inc., which filed the biggest bankruptcy in U.S. history in 2008, has so far paid creditors about 9 cents on the dollar, or half of what it expects to pay by about 2016. Photographer: Tomohiro Ohsumi/Bloomberg
Lehman Brothers Holdings Inc., which filed the biggest bankruptcy in U.S. history in 2008, has so far paid creditors about 9 cents on the dollar, or half of what it expects to pay by about 2016. Photographer: Tomohiro Ohsumi/Bloomberg

March 27 (Bloomberg) -- Lehman Brothers Holdings Inc., which is still selling assets after exiting bankruptcy last year, said it will pay $14.2 billion to creditors and affiliates on April 4.

Depending on available funds, the following payout will take place around Sept. 30, the defunct investment bank said in a statement today.

Lehman, which filed the biggest bankruptcy in U.S. history in 2008, has so far paid creditors about 9 cents on the dollar, or half of what it expects to pay by about 2016. Its first payment was $22.5 billion and its second distribution was about $10.5 billion.

The third payment set for next month will be swelled by $2.7 billion in cash received Feb. 27 from the sale of apartment owner Archstone to Equity Residential, according to court documents. Lehman sold Archstone, its biggest real estate asset, for cash and stock.

As of Feb. 28, Lehman had free cash of $9.8 billion, according to a U.S. Bankruptcy Court filing in Manhattan yesterday. The defunct firm paid advisers $14.7 million in February.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.