Lehman Settles Court Fight With SAP Founder, Frees CashSteven Church
Lehman Brothers Holdings Inc. settled a bankruptcy court fight with companies affiliated with a founder of software maker SAP AG, a step that allows the defunct investment bank to distribute about $1.8 billion to creditors.
Lehman will end its dispute with entities affiliated with billionaire Klaus Tschira, the SAP co-founder. The fight with those companies, Dr. H.C. Tschira Beteiligungs GmbH & Co. KG and Klaus Tschira Stiftung GmbH, was “the last remaining impediment” to a deal that would send cash to creditors, Lehman said yesterday in court papers.
Since winning court approval in 2011 of a plan to distribute money to creditors, Lehman’s bankruptcy administrator has been settling disputes and releasing cash at regular intervals.
The $1.8 billion was tied up by the Tschira fight, which involved the proper way to calculate damages caused by the termination of contracts between a Lehman affiliate and the Tschira entities, according to a court document.
Under Lehman’s liquidation plan, creditors may get 18 cents on the dollar by 2016 as they divide about $65 billion, according to court records.
The case is In re Lehman Brothers Holdings Inc., 08-bk-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).