NEW YORK (AP) -- Lehman Brothers Holdings Inc. said Friday that it will receive about $474.4 million for selling some of the IOUs of its brokerage arm as the former investment bank seeks to repay billions to creditors.
The general unsecured claims are being sold for 44.75 percent of their face value of $1.06 billion. Earlier this month, Lehman Brothers agreed to sell $4.22 billion in claims against Lehman Brothers Inc. for proceeds of $1.88 billion — 44.5 percent of face value.
A bankruptcy court judge in April approved settlements that cleared the way for the remnants of Lehman to repay its customer claims in full. Holders of unsecured claims will be repaid based on whatever is left following the completion of customer claims.
Lehman's $639 billion bankruptcy in September of 2008 was the largest ever in U.S. history. Lehman's individual retail customers were repaid in the first few days of the brokerage's liquidation. But it took several years of talks before Lehman, its holding company and its European arm could agree on how claims for larger customers of each unit, such as hedge funds or institutional investors, would be paid.