Unsecured Lehman Creditors To Get $4.6B

Aug 19 2014 | 6:32am ET

Hedge funds and other unsecured creditors of Lehman Brothers are set to split more than $4.6 billion, the bankrupt firm’s liquidator said Friday.

The allocation is the first to the collapsed bank’s unsecured creditors and represents about 17% of the value of claims filed with the trustee, James Giddens. But Giddens said it was still a “milestone” that marked a much better outcome than he expected when he was appointed six years ago.

“That such a distribution is even possible represents an extraordinary achievement that was far from certain when the liquidation began,” he said. “We expect additional distributions to unsecured general creditors while maintaining appropriate reserves and protecting claimants’ interests and due process rights.”

Giddens has approved $3.47 billion in claims to the money, with distributions to begin on Sept. 10. The remaining $1.15 billion will be held for unresolved claims.

Giddens has already returned more than $105 billion to former Lehman customers, repaying them in full. Another $240 million will fully repay more senior creditors of the bank, which collapsed in 2008 amidst the credit crisis.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...