NEW YORK (Reuters) – Lehman Brothers Holdings Inc (LEHMQ.PK) unveiled the latest in a string of settlements with major financial creditors, reaching deals with Bank of America Corp (BAC.N) and Merrill Lynch that will reduce the banks’ claims against Lehman by a combined $7.5 billion.
As part of the settlement, the banks have pledged support for Lehman’s $65 billion bankruptcy exit plan, according to court papers filed late on Wednesday in U.S. Bankruptcy Court in Manhattan.
Bank of America will reduce its derivatives claims against Lehman entities by $4.5 billion, Lehman said. Merrill Lynch, a Bank of America subsidiary since 2008, will lower its claims by an additional $3 billion, court papers show.
Bank of America will also withdraw an appeal of a bankruptcy court’s ruling rejecting its $500 million setoff claim against Lehman, and will return about 71 percent of that total — $356 million — to the Lehman estate, according to
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