UPDATE 1-Lehman: Creditor claims should be cut to $605 bln

* Lehman says value of creditors' claims should be cut

* Estimates claims at $605 billion

* Estimates allowed claims to be about $260 bln

By Emily Chasan

NEW YORK, March 29 (Reuters) - Lehman Brothers Holdings Inc LEHMQ.PK said on Monday it believes claims from creditors against its bankruptcy estate should be cut to $605 billion, according to a document filed with the U.S. Securities and Exchange Commission.

The bankrupt investment firm has been contending with more than 64,000 claims from creditors.

Last November, Lehman Chief Executive Bryan Marsal said the claims had a face value of more than $820 billion and that it was possible the claims could reach $1 trillion.

Over the past few months Lehman has objected to hundreds of claims, saying they didn't meet certain requirements.

"Based upon clear errors, duplications and non-controversial corrections that are appropriate, the aggregate total of the filed claims should be reduced," Lehman said in its filing.

Lehman filed for bankruptcy protection on Sept. 15, 2008, listing assets of $639 billion and debts of $613 billion. Earlier this month, it proposed a reorganization plan that would create a new company to continue managing Lehman's long-term assets outside of the bankruptcy process.

The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.

(Reporting by Emily Chasan; Editing by Richard Chang)