* Deal supported by unsecured creditors
* Bankruptcy court yet to approve settlement
Oct 6 (Reuters) - Lehman Brothers Holdings Inc said Ambac Assurance Corp agreed to withdraw claims worth more than $6.1 billion against the company as part of a global settlement agreement.
The deal has the support of Lehman's unsecured creditors and is yet to be approved by the bankruptcy court, papers filed late on Tuesday showed.
As part of the settlement, the two parties have agreed to release each other from any liability under certain disputed derivatives transactions.
'This global settlement is the result of approximately three months of arm's length, good faith negotiations,' Lehman said.
In September, Lehman said it worked to slash claims on the estate and that its differences with creditors are 'narrowing.'
Lehman filed for Chapter 11 two years ago, in the largest-ever U.S. bankruptcy.
British bank Barclays Plc bought Lehman's main U.S. brokerage business after the bankruptcy filing, and Lehman's other assets are being managed and unwound while operating under bankruptcy protection.
Though not officially settled, Lehman said it has made progress in narrowing the amount of claims from third parties, affiliates and others by more than half, to $464 billion from almost $1.2 trillion.
The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.
(Reporting by Santosh Nadgir in Bangalore; Editing by Prem Udayabhanu) Keywords: LEHMAN/ (santosh.nadgir@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 80 4135 5800; Reuters messaging: santosh.nadgir.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Bankruptcy court yet to approve settlement
Oct 6 (Reuters) - Lehman Brothers Holdings Inc said Ambac Assurance Corp agreed to withdraw claims worth more than $6.1 billion against the company as part of a global settlement agreement.
The deal has the support of Lehman's unsecured creditors and is yet to be approved by the bankruptcy court, papers filed late on Tuesday showed.
As part of the settlement, the two parties have agreed to release each other from any liability under certain disputed derivatives transactions.
'This global settlement is the result of approximately three months of arm's length, good faith negotiations,' Lehman said.
In September, Lehman said it worked to slash claims on the estate and that its differences with creditors are 'narrowing.'
Lehman filed for Chapter 11 two years ago, in the largest-ever U.S. bankruptcy.
British bank Barclays Plc bought Lehman's main U.S. brokerage business after the bankruptcy filing, and Lehman's other assets are being managed and unwound while operating under bankruptcy protection.
Though not officially settled, Lehman said it has made progress in narrowing the amount of claims from third parties, affiliates and others by more than half, to $464 billion from almost $1.2 trillion.
The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555.
(Reporting by Santosh Nadgir in Bangalore; Editing by Prem Udayabhanu) Keywords: LEHMAN/ (santosh.nadgir@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 80 4135 5800; Reuters messaging: santosh.nadgir.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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