Lehman Brothers Seeks Approval Of Settlement Agreement With Fannie Mae

The plan administrator for Lehman Brothers Holdings Inc. moved for approval of a settlement agreement Jan. 23 with the Federal National Mortgage Association in the U.S. Bankruptcy Court for the Southern District of New York (In re Lehman Brothers Holdings Inc., Bankr. S.D.N.Y., No. 08-13555 (JMP)).

According to court documents, the agreement provides for the Fannie Mae claim to be reduced from the asserted amount of $18.9 billion and allowed in the amount of $2.15 billion. The agreement requires court approval because the court’s settlement procedures order limits discretionary claims settlements to $200 million.

The $2.15 billion amount ...