*from www.reuters.com, Mar. 27, 2013 (To view original article click here.)
Take Away #1: Lehman Brothers Holdings Inc. said it plans to distribute about $14.2 billion to creditors early next month, as the company winds down following its emergence last year from bankruptcy protection.
Key Facts and Figures:
- The distribution is to be made on April 4 and will be Lehman’s third since emerging from Chapter 11 protection on March 6, 2012.
- The payout will increase total distributions to about $47.2 billion, with two-thirds going to third parties.
- Lehman said it hopes to distribute more than $65 billion, on average about 21 cents on the dollar for allowed claims.
- 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 October 1.
- After the distribution, holders of senior unsecured claims against the parent company will have received about 14.8 cents on the dollar on their claims.
- Lehman’s next distribution is expected around September 30.
Take Away #2: The company’s wind-down is expected to take a few years.
Key Facts and Figures:
- Lehman is still litigating against JPMorgan Chase & Co, once its main clearing bank, and others to maximize potential payouts to creditors.
Take Away #3: Lehman, once Wall Street’s fourth-largest investment bank, filed for bankruptcy protection on September 15,2008, in a major trigger for that year’s global financial crisis.
Key Facts and Figures:
- The company reported $639 billion of assets at the time.
- Lehman’s 2008 filing made the bankruptcy by far the largest in U.S. history.
Take Away #4: Lehman issues its monthly operating report.
Key Facts and Figures:
- According to Wednesday’s report, Lehman 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.
*To view original article from www.reuters.com click here.