The trustee liquidating Lehman Brothers Holdings Inc.’s brokerage unit yesterday asked a federal bankruptcy judge for permission to distribute another $1.89 billion to unsecured creditors, boosting their total recovery to $7.78 billion, Reuters reported yesterday. Trustee James Giddens said that the creditors will have recouped 35 cents on the dollar, up from 27 cents so far, if the proposed third payout wins approval from Bankruptcy Judge Shelley Chapman at an August 4 hearing in Manhattan. Roughly 111,000 former customers of the brokerage have already been paid more than $106 billion, and senior creditors have also been paid in full.
