The team unwinding Lehman Brothers Holdings Inc. boosted its estimate of how much cash it expects to bring in for creditors to $90.6 billion, buoyed primarily by a settlement with Lehman Brothers Bankhaus A.G., the German arm of Lehman’s investment-banking operation, the Wall Street Journal reported today. The new projection represents a $1.8 billion increase over an estimate late last summer of $88.8 billion, according to the company’s most recent cash flow estimates, filed on Friday with the U.S. Bankruptcy Court in Manhattan. Lehman Brothers officially emerged from chapter 11 protection in March 2012 and began paying back creditors the following month. Although Lehman is out of bankruptcy protection, its case is far from over and will likely continue for years as a bankruptcy team continues to liquidate Lehman’s assets. Lehman said that the wind-down of the business “may extend beyond 2018.” As a result of the gains on its real estate, derivatives and private-equity investments, Lehman Brothers still has $13.8 billion on its balance sheet after making six distributions of $66.1 billion to creditors. Lehman paid out $9 billion to third-party creditors in October.
