* April 4 distribution to boost payout above $47 bln
* Lehman has spent $2.08 bln on professional fees, costs
* Lehman also settles with former Swiss derivatives unit
By Jonathan Stempel
March 27 Lehman Brothers Holdings Inc said on
Wednesday it plans to distribute about $14.2 billion to
creditors early next month, as the company winds down following
its emergence from bankruptcy protection last year.
The distribution, to be made April 4, will be Lehman's third
since it emerged from Chapter 11 protection on March 6, 2012.
Lehman said the payout will increase total distributions to
about $47.2 billion, with two-thirds going to third parties.
The company has said it hopes to distribute more than $65
billion, on average about 21 cents on the dollar for allowed
April's payout will include $9.4 billion to third-party
creditors and affiliates, $4.4 billion to other Lehman debtors
and affiliates, and $370 million for claims deemed valid since
the second distribution on Oct. 1.
Following the distribution, holders of senior unsecured
claims against the parent company will have received about 14.8
cents on the dollar on their claims, a court filing showed.
Lehman's next distribution is expected around Sept. 30.
Separately, Lehman said it has reached a settlement with
Lehman Brothers Finance AG, its former Swiss-based derivatives
unit, over billions of dollars of guarantees and intercompany
It said terms will be disclosed later. The settlement
requires court approval, and Lehman said it expects a hearing to
be held on April 24.
Lehman's wind-down is expected to take a few years. The
company is still litigating against JPMorgan Chase & Co,
once its main clearing bank, and others to maximize potential
payouts to creditors.
Once Wall Street's fourth-largest investment bank, Lehman
filed for bankruptcy protection on Sept. 15, 2008, in what was a
major trigger for that year's global financial crisis.
The company reported $639 billion of assets at the time,
making the bankruptcy by far the largest in U.S. history.
Separately on Wednesday, Lehman issued its monthly operating
It has spent about $2.08 billion on fees and expenses for
restructuring advisers, law firms and other professional counsel
since the bankruptcy began, court filings showed.
The payout for services since the company emerged from
Chapter 11 has been about $192 million, including $14.7 million
in February, the filings show.
The case is In re: Lehman Brothers Holdings Inc, U.S.
Bankruptcy Court, Southern District of New York, No. 08-13555.