Lehman Brothers, the Wall Street investment firm that sparked global financial chaos back in 2008, is about to emerge from bankruptcy and — partly — pay off its debts.
Its collapse, from risky bets on the US housing market, rocked financial markets and led to the credit crunch.
Its creditors said they were owed over $300 billion dollars. A sell off of assets means they will share just $65 billion.
Lehman’s bankruptcy was a record $639 billion.
It will start paying back creditors on April 17. They include Wall Street firms like Goldman Sachs and hedge fund investors such as Paulson & Co.
While bankruptcy is legally behind Lehman, the court process will continue for an uncertain number of years as various claims and suits work their way through the system. As of January, it had spent more than $1.58 billion on professional fees, including lawyers and advisers.