Lehman Brothers Europe To Repay Creditors Another $5.5 Billion

Creditors will recover another $5.5 billion from the biggest bankruptcy in history, Lehman Brothers Holdings Inc.'s (OTCMKTS:LEHMQ) remaining administrators said on Thursday.

More than 1,000 creditors of Lehman Brothers International Europe, the former investment bank's hub for trading and investments, will divide a $5.5 billion payout next week at 68.5 cents on the dollar.

PricewaterhouseCoopers LLP, the joint administrator for LBIE, said a dividend payout, 43.3 percent of what they were owed, would be paid on June 28 following the resolution of various disputes with affiliates and settlements that reduced claims between creditors and trading partners.

This dividend follows a previous $3.1 billion payment. The administrators said that a third round of dividends would be paid out in the future as assets are realized and as claims are agreed upon.

An April progress report from PriceWaterhouseCoopers and Lehman said that unsecured creditors could possibly be paid in full from surplus funds, causing some creditors to avoid agreeing to the 68.5 rate just yet.