(Clarifies first paragraph to show some creditors have waited
nearly six years to recoup money)
By Jonathan Stempel
NEW YORK Aug 15 Unsecured creditors of Lehman
Brothers Holdings Inc's brokerage unit who have waited nearly
six years to recoup their money will begin receiving an initial
$4.62 billion payout next month, the trustee liquidating the
unit said on Friday.
James Giddens, the trustee, said distributions would begin
on Sept. 10 and cover 17 percent of the $27.2 billion of
unsecured claims associated with the brokerage unit, Lehman
About $3.47 billion will go to creditors whose claims have
been deemed valid, and another $1.15 billion will be set aside
for claims that are still pending.
The payout follows distributions of $105 billion to 111,000
former customers, who have been paid in full, and other
creditors whose claims had higher priority.
In a statement, Giddens said a payout to unsecured creditors
had been "far from certain" when the brokerage liquidation began
soon after Lehman went bankrupt on Sept. 15, 2008. More payments
to unsecured creditors are expected, he said.
Giddens' recovery efforts suffered a setback on Aug. 5 when
a federal appeals court said Barclays Plc was entitled
to retain $5.9 billion of disputed assets as part of its hurried
purchase of much of Lehman's brokerage unit.
Lehman was Wall Street's fourth-largest investment bank
before seeking Chapter 11 protection. It reported $639 billion
of assets, in what remains the largest U.S. bankruptcy.
The case is In re: Lehman Brothers Inc, U.S. Bankruptcy
Court, Southern District of New York, No. 08-01420.
(Reporting by Jonathan Stempel in New York; Editing by Lisa Von