Lehman Set to Pay Creditors $14.2 Billion on April 4Linda Sandler
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).