Oct. 27 (Bloomberg) -- Lehman Brothers Holdings Inc. and Danske Bank A/S agreed to reduce the Danish bank’s bankruptcy claim to $580 million and have it support Lehman’s reorganization plan, according to a court filing.
Danske Bank in 2009 filed a $699.6 million claim against Lehman and a second claim against its commercial paper unit for same amount. The claims are related to a 2005 commercial and residential loan repurchase agreement, according to the filing in U.S. Bankruptcy Court in Manhattan. The Danish bank later filed four more claims arising from derivatives deals totaling $38.6 million.
The two original claims will become non-priority, general unsecured claims of $580 million each and all other claims are released, Lehman said in the filing. Danske will transfer a $33 million loan secured by property in Costa Rica to Lehman and vote for Lehman’s $65 billion plan to liquidate its assets in bankruptcy, according to the filing, which seeks court approval for the agreement.
Lehman said in a separate filing yesterday that it is or will be in active settlement discussions with up to 15 derivative contract counterparties to take over the contracts. The bank said it’s seeking court approval for procedures to amend and assume the contracts and pay cure costs and fees. The counterparties and contract amounts weren’t disclosed.
The bankruptcy case is In re Lehman Brothers Holdings Inc., 8-13555, U.S. Bankruptcy Court, Southern District of New York Manhattan).
--Editors: Michael Hytha, Douglas Wong
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