Liquidators are seeking permission from a federal bankruptcy judge to distribute another US$1.89 billion to unsecured creditors of Lehman Brothers Holdings Inc., the giant investment bank blamed for triggering the 2008 global financial crisis after it declared the biggest bankruptcy in US history
The payout will boost the amount of money recovered from the collapse to U$7.78 billion.
James Giddens, a trustee liquidating the bank’s assets, said creditors will have recouped 35 cents on the dollar, up from 27 cents so far, if the proposed third payout is approved, according to Reuters.
More than 111,000 former clients have been paid more than US$106 billion while senior creditors have been paid in full.
The latest payout includes US$1.18 billion Giddens had held in reserve.
About US$583 million of that money were allocated for disputes over Barclays Plc.’s hurried purchase of much of the brokerage unit a few days after the bankruptcy filing. Those disputes were settled on June 5.
Lehman had been Wall Street’s fourth largest investment bank before seeking Chapter 11 protection on Sept. 15, 2008.
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