The trustee in charge of Lehman Brothers Inc. has sought court approval to make his fourth distribution to the defunct brokerage’s unsecured creditors, boosting their recovery to 38 cents on the dollar, The Wall Street Journal reported yesterday. Trustee James Giddens said that he is close to finishing the winding down of Lehman’s broker-dealer business more than seven years after the bank collapsed. Previously, creditors’ recovery was pegged at 35 cents on the dollar. Giddens, who already has returned $7.8 billion to the brokerage’s creditors, says that he has not calculated the exact amount he expects to pay out. With $1.47 billion in the estate’s coffers, he estimates it will another 3 cents, bringing the recovery rate to 38 cents on the dollar. The trustee intends to ask Judge <b>Shelley C. Chapman</b> next month for approval for the fourth payout. If he gets the green light, checks will be mailed out in July. Further payouts would be contingent on winning or settling pending litigation, which would free up funds currently on reserve.
