NEW YORK, April 20, 2017 /PRNewswire/ -- James W. Giddens, Trustee for the liquidation of Lehman Brothers Inc. (LBI) under the Securities Investor Protection Act and of the law firm Hughes Hubbard & Reed LLP, initiated a fifth interim distribution totaling $226 million to thousands of unsecured general creditors with allowed claims by sending wires and checks today. Distributions from the LBI estate to unsecured general creditors will now total 39 percent, or approximately $9 billion.
"We continue to exceed expectations from the start of the liquidation and take steps to close the estate by making this fifth significant distribution to general creditors," Giddens said. "Work also continues to maximize assets while resolving remaining disputed claims fully and fairly for LBI creditors."
In March, the Bankruptcy Court approved the Trustee's request for a fifth interim distribution totaling $228 million. In total, more than $115 billion has been returned to LBI customers and creditors. Customers have received $106 billion, fully satisfying the 111,000 customer claims. Most customer claims were fulfilled within weeks of the liquidation. Secured, priority and administrative creditors have also received 100 percent distributions.
While the estate remains in a phase of substantial completion, the potential for any future distribution of this size is not certain. Additionally, the timing of any future distribution will largely depend on the outcomes of ongoing litigation where a small number of claimants have appealed Court rulings upholding the Trustee's claims determinations.
The progress in the LBI liquidation would not have been possible without the assistance of the Securities Investor Protection Corporation and the Securities and Exchange Commission, the oversight of United States Bankruptcy Court, the Honorable Shelley C. Chapman, presiding, and the success of the Trustee's professionals at Hughes Hubbard & Reed LLP and Deloitte.
The Trustee is represented by Hughes Hubbard & Reed LLP.
Media Contact for the Trustee:
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SOURCE Hughes Hubbard & Reed LLP