Lehman plans to distribute $14.2 bn to creditors

Lehman Brothers Holdings Inc said on Wednesday it plans to distribute about USD 14.2 billion to creditors early April, as the company winds down following its emergence in 2012 from bankruptcy protection.

The distribution, to be made April 4, will be Lehman's third since it emerged from Chapter 11 protection on March 6, 2012.

Lehman said the payout will increase total distributions to about USD 47.2 billion, with two-thirds going to third parties.

The company has said it hopes to distribute more than USD 65 billion, on average about 21 cents on the dollar for allowed claims.

April's payout will include USD 9.4 billion to third-party creditors and affiliates, USD 4.4 billion to other Lehman debtors and affiliates, and USD 370 million for claims deemed valid since the second distribution on October 1.

Following the distribution, holders of senior unsecured claims against the parent company will have received about 14.8 cents on the dollar on their claims, a court filing showed.

Lehman's next distribution is expected around September 30.

The company's wind-down is expected to take a few years. Lehman is still litigating against JPMorgan Chase & Co , once its main clearing bank, and others to maximize potential payouts to creditors.

Once Wall Street's fourth-largest investment bank, Lehman filed for bankruptcy protection on September 15, 2008, in a major trigger for that year's global financial crisis.

The company reported $639 billion of assets at the time, making the bankruptcy by far the largest in U.S. history.

Separately on Wednesday, Lehman issued its monthly operating report.

It has spent about USD 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 USD 192 million, including USD 14.7 million in February, the filings show.