Dec 6 A U.S. bankruptcy court judge ruled that Bank of America Corp (BAC.N) must pay about $90 million in interest to Lehman Brothers Holdings Inc LEHMQ.PK on top of the $501.8 million of deposits that the bank already has been ordered to return.
The ruling comes almost three weeks after Judge James Peck ruled that Bank of America violated federal law when it "brazenly" seized $500 million of Lehman's deposits, taking advantage of Lehman's weakened condition in the summer of 2008. [ID:nN17203028]
Bank of America was not immediately available for comment. After the initial ruling last month, a bank spokeswoman had said the company was disappointed with the court's decision and was considering an appeal.
On Friday, the judge directed Bank of America to repay the $501.8 million it seized from Lehman, plus simple interest of 9 percent per annum from Nov. 10, 2008, until the date of entry of the judgment. This adds up to about $592 million, according to figures in the ruling.
Last month's court decision is a victory for Lehman as it tries to repay creditors still owed hundreds of billions of dollars following its Sept. 15, 2008, bankruptcy.
The case is In re: Bank of America NA vs Lehman Brothers Holdings Inc et al, U.S. Bankruptcy Court, Southern District of New York, No. 08-ap-01753. The main bankruptcy case is In re: Lehman Brothers Holdings Inc in the same court, 08-13555. (Reporting by Santosh Nadgir in Bangalore; Editing by Unnikrishnan Nair)