NEW YORK, Oct. 31, 2016 /PRNewswire/ -- James W. Giddens, Trustee for the liquidation of Lehman Brothers Inc. (LBI) under the Securities Investor Protection Act and chair of the Hughes Hubbard & Reed LLP Corporate Reorganization and Bankruptcy Group, has filed the 15th Interim Report with the Bankruptcy Court that details progress in winding down the estate, which is now in a phase of substantial completion.
"Significant progress continues in winding down the estate for the largest and most complex broker-dealer bankruptcy in history," Giddens said. "With close to $115 billion returned to customers and creditors, results have far exceeded any expectations at the beginning of this liquidation, and we are working diligently to add to that total and close the estate."
Most recently, the estate completed the fourth interim distribution to unsecured general creditors with allowed claims, bringing the cumulative payout on these allowed claims to 38 percent, or approximately $8.6 billion.
Additional distribution information:
- Secured, priority and administrative creditors have received 100 percent distributions, and total distributions to all creditors total roughly $8.8 billion.
- Customers have received $106 billion, fully satisfying the 111,000 customer claims, with most claims fulfilled within weeks of the liquidation.
Out of the more than 134,000 claims administered in this proceeding, only 427 disputed customer, secured, priority and general creditor claims remain, and they are subject to court proceedings and appeals. Resolving the claims, therefore, depends on court schedules and the positions of claimants who have disputed the Trustee's claim determination, and this may take considerable time. Related to these remaining claims, the Trustee is holding roughly $434 million in reserve.
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 & Touche LLP.
The Trustee is represented by Hughes Hubbard & Reed LLP.
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SOURCE Hughes Hubbard & Reed LLP