Lehman asks court to approve $99 million settlement with Millennium

Lehman Brothers Holdings Inc has requested a US bankruptcy court to approve a $99 million settlement with Millennium Management LLC, to sort out disputes relating to certain swap transactions and a partnership agreement, court papers show.                                           

Lehman's unit, Lehman Brothers Special Financing Inc (LBSF), became a limited partner in Millennium USA LP (MUSA) on April 28, 2008, as per the filing.                                           

On December 30, 2008, LBSF had submitted a written request to Millennium to withdraw from the partnership. Lehman's unit also sought to pull back its capital worth $95 million from the partnership venture, court documents show.                             

Millennium had recognized LBSF's withdrawal as a Limited Partner in the venture but did not return the $95 million to Lehman citing settlement of certain swap transactions, according to the court papers.                                           

Millennium had asked LBSF to pay about $16 million to set off certain swap transactions. However, Lehman contested the claim and filed a case against Millennium in January 2010, court papers show.                                           

In its latest filing, Lehman said Millennium had agreed to settle the case by paying $99 million.                                           

Also, Millennium will have $8 million in unsecured claims against the Lehman estate, documents show.                                           

At the peak of the credit crises in 2008, Lehman filed for the largest US bankruptcy in history by listing more than $600 billion of assets.                                           

The case is In re: Lehman Brothers Holdings Inc, US Bankruptcy Court, Southern District of New York, No. 08-13555.