Lehman Brothers Holdings today was ordered by a U.S. Bankruptcy Court judge to pay the PBGC $127.6 million to shore up Lehmans underfunded pension plan, confirmed PBGC spokesman Jeffrey Speicher.
The PBGC expects to become trustee of the pension plan within the next several weeks, Mr. Speicher said in an interview following the ruling by Judge James Peck in New York.
The PBGC began proceedings on Dec. 12 to end Lehman Brothers retirement plan, which had about $1.2 billion in assets and $1.04 billion in liabilities as of Jan. 1, 2008, according to the bankruptcy court. Mr. Speicher said the plan currently is underfunded by about $115 million.
Lehman attorney Richard Krasnow could not be reached for comment by press time.
Lehman Brothers filed for Chapter 11 bankruptcy protection on Sept. 15. Five days later, the U.S. Bankruptcy Court in New York approved the $1.75 billion sale of the companys capital markets and investment banking operations to Barclays Capital.