Lehman Brothers Holdings Inc. settled a $1.2 billion claim with Freddie Mac, freeing up millions of dollars which will be available for distribution to the bank's creditors, Reuters reported yesterday. Under the settlement, Lehman will make a one-time cash payment of $767 million to Freddie Mac, Lehman said in a court filing on Wednesday. The dispute stems from two loans extended to Lehman by Freddie Mac in the months before the bank filed for bankruptcy. Lehman was scheduled to repay the loan on Sept. 15, 2008, the day it filed for the biggest-ever bankruptcy. Lehman had set aside $1.2 billion to cover the claim as a general unsecured claim, but Freddie Mac argued that the claim should get priority status.
