Lehman Begins Next Week the Distribution of $22,500 Million to its Creditors
Investment bank Lehman Brothers said today that next week will begin to distribute to creditors of $ 22,500 million, over three and a half years after starring in the largest bankruptcy in U.S. history.
Lehman Brothers said in a statement that the money will start to deliver from April 17 to more than 12,000 creditors with valid claims, and stated that the amount does not include another 4,400 million reserved for requests that are still disputed in the courts.
Another 6,000 million dollars in cash will be distributed and not if be reserved for other cats, anticipated investments and other items, in compliance with Chapter 11 of the Bankruptcy Act of the United States.
Lehman Brothers said it will launch a second round of disbursement of funds to creditors around September 30 this year.
The announcement was made just over a month after the bank officially out of bankruptcy in which it was held on 15 September 2008 to begin repaying some of the money he owes to his former clients.
The figure announced today is greater than 10,000 million dollars the board that is responsible for the liquidation of bank assets estimated on 6 March.
This amount is just part of the 65,000 million dollars agreed to return to creditors with claims in excess of 370,000 million as part of a settlement plan proposed by the bank and accepted in December by Judge James Peck.
More than three and half years, the collapse of Lehman Brothers triggered a domino effect that led to the crisis deeper and more prolonged in the U.S. since the Great Depression of the thirties.
The collapse of investment bank became the symbol of the financial crisis, caused by the disproportionate amount of debt tied to mortgages and their infiltration into nearly every corner of the financial world.
Lehman Brothers, unlike Bear Stearns or Fannie Mae mortgage funds and Freddie Mac was not rescued by the government and the U.S. Federal Reserve nor by any of the big financial institutions that are offered.
British bank Barclays was interested but eventually backed down because the U.S. Treasury refused to guarantee the operation.
Lehman Brothers had no choice but to turn and go bankrupt and dragged other investment banks on Wall Street as Goldman Sachs or Morgan Stanley, who had become commercial entities to survive.
Category: Business News
