The Investment bank Lehman Brothers today began distributing to creditors of $ 22,500 million, over three and a half years after starring in the largest bankruptcy in U.S. history.
“We have started sending the funds, but it is possible that many of the parts will take at least one day to receive it, and yet we can not give an exact figure on how much money has been distributed,” a spokeswoman Lehman Brothers Holdings told.
Lehman Brothers announced last week the beginning of the allocation of funds to more than 12,000 creditors with valid claims, while 4,400 million dollars has been reserved for applications that are still disputed in the courts.
Another 6,000 million dollars in cash will be distributed and not if be reserved for various expenditures, anticipated investments and other items, in compliance with Chapter 11 of U.S. Bankruptcy Law.
Lehman Brothers is planning a second round of disbursement of funds to creditors around September 30 this year.
On March 6, the bank officially out of bankruptcy in which it was held on 15 September 2008 to begin to repay part of the money it owes to its customers.
The figure of the first distribution of funds is only 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 or the U.S. Federal Reserve nor by any of the big financial institutions that are offered.
The bank thus had no choice but to turn to bankruptcy and dragged other investment banks on Wall Street as Goldman Sachs and Morgan Stanley, who had become commercial entities to survive.
Category: Business News