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Lehman Exits Bankruptcy, Set To Pay Creditors
Lehman Brothers Holdings Inc., which in 2008 filed for the biggest bankruptcy in U.S. history and whose collapse roiled world markets, says it has exited bankruptcy and will make its first payment to creditors on April 17.
"Although Lehman has emerged from bankruptcy protection, its case is far from over and will likely continue for years as it liquidates its assets. Lehman's new seven-member board, which includes executives and directors of businesses and subsidiaries related to Delphi Automotive PLC, Morgan Stanley , American International Group Inc. and Capmark Financial Group Inc. will guide the company's liquidation.
"Lehman, once the nation's fourth-largest investment bank collapsed in September 2008 in the largest bankruptcy in history, has some $10.5 billion it intends to start doling out to creditors on April 17 under an initial distribution."
Bloomberg puts the pay out into perspective:
"The failed energy trader Enron Corp.'s investors were paid 53 cents on the dollar, while Lehman's $65 billion liquidation plan would give the average creditor less than 18 cents in the next few years, according to court documents."