Lehman Brothers Holdings Inc., which in 2008 filed the biggest bankruptcy in U.S. history and has said it’s planning to start paying creditors from its cash holdings, may initially distribute $8.1 billion to $10.7 billion.
In its initial payout to creditors ranging from Goldman Sachs Group Inc. to individual bondholders, the Lehman parent company would contribute an estimated $3.3 billion to $4.8 billion, and Lehman’s special financing unit might pay out $4.8 billion to $5.9 billion, the defunct investment bank estimated in a court filing today.
The size of the payout will depend on a judge’s ruling on how Lehman must keep reserves for $112 billion in disputed claims, Lehman said. If forced to set aside available cash, the payout will be smaller. If the judge allows Lehman to hold back non-cash assets as reserves, creditors with approved claims will get more money, it said.
The filing contains Lehman’s first public estimate of the size of an initial payout planned for the first quarter.
© Copyright 2013 Bloomberg News. All rights reserved.