Three years after Lehman Brothers declared the biggest corporate bankruptcy in history, the defunct bank is approaching the end of the process as additional creditors voice their support for a final pay-out plan, reports the FT.  The Lehman estate said on Thursday that Bank of America and Merrill Lynch had agreed to support a compromise proposal to settle how Lehman would repay its derivatives counterparties for positions that were cancelled during its failure in September 2008. As part of the agreement, BofA, which acquired Merrill in 2008, will drop its appeal of an earlier court decision forcing it to pay $500m to Lehman, related to bank accounts seized just before Lehman’s bankruptcy. BofA also would reduce its derivatives claims by $4bn.

This entry was posted by Kate Mackenzie on Friday, September 30th, 2011 at 5:37 and is featured in The 6am Cut London (30 Sep 2011), The Lunch Wrap (30 Sep 2011) . Tagged with bank of america, Lehman Brothers, merrill lynch. Edit this entry.