Business

Lehman Brothers to repay creditors more quickly

Lehman Brothers logo
Image caption Lehman Brothers was once the fourth largest investment bank in the US

Lehman Brothers has said it will begin paying out $22.5bn (£14bn) to creditors next week, double its initial estimate for the first round of repayments.

The US investment bank, which collapsed in 2008 and only came out of bankruptcy protection last week, has estimated it will repay $65bn in total.

The repayment plan was approved by a bankruptcy judge in December last year.

Lehman's collapse in 2008 was widely seen as one of the key catalysts of the global financial crisis.

The bank employed more than 25,000 people at its peak and was once the fourth-largest investment bank in the US.

It collapsed in the face of billions of dollars of losses in the US sub-prime mortgage market.

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