Wednesday, 17 September 2014
Last updated 44 min ago
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.
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