Lehman Says Officemax Deal Cuts Claims by $400 Million

Lehman Brothers Holdings Inc. said a proposed settlement with OfficeMax Inc. (OMX) would cut claims against the defunct investment bank by $400 million, to about half of the original claim, according to a federal court filing in Manhattan.

OfficeMax, which announced the deal separately today, received an $817.5-million Lehman- backed note in connection with a 2004 timberlands sale. Lehman is trying to cut disputed claims to improve its payments to the remaining creditors. The settlement needs a bankruptcy judge’s approval.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net