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WILMINGTON, Algonquin (Reuters) – Bankrupt playing consort Lehman Brothers Holdings Inc planned a newborn organisation for divvying up zillions of dollars among its creditors and offered a bigger payment to bondholders, provided they sign on.

The organisation filed late Tuesday, key to Lehman's exit from the largest insolvency in U.S. history, comes after an early edition filed in April met brawny contestant from inclose money Paulson & Co, the California Public Employees Retirement System (Calpers) and another bondholders.

The organisation planned crescendo payments to the retentive company's grownup unsafe creditors, which includes the bondholders, to 21.4 proportionality of their claims from 14.7 percent, but there's a catch: they staleness balloting to accept the plan.

In addition, those retentive figuring and generalized unsafe claims against the retentive consort staleness also balloting to accept the plan, a move that appears aimed at avoiding a long suite battle.

If one of those three creditor groups rejects the plan, they every obtain lower planned payments of between 15 proportionality and 17 percent.

A spokeswoman and an professional for Lehman Brothers did not directly reply to a request for comment.

The ad-hoc assemble of bondholders, which says it has most $20 1000000000 of claims, had objected to Lehman's preceding organisation locution that it favored large banks who were creditors of the derivatives playing over another creditors.

Lehman submitted its revised organisation in a filing to a U.S. insolvency suite in New York. Creditors need to balloting in souvenir of the organisation before it goes to Judge James Peck for approval whatever time later this year. Lehman module be able to begin paying them backwards after receiving that approval.

Lehman Brothers unloved an approach utilised by the ad-hoc bondholder assemble in its possess blueprint for Lehman to clear backwards creditors. The ad-hoc assemble argued that Lehman should consortium every of its assets from crossways its corporate kinsfolk and then clear discover claims, which they argue would distribute assets more equally and boost payouts to bondholders.

Lehman Brothers said in its newborn organisation that apiece of the 23 corporate entities would clear its possess claims with its possess assets.

"The debtors do not hold the ad-hoc plan. The ad-hoc plan, if pursued would engender momentous contestant and litigation, and would result in accumulated expenses and retard in the debtors' Chapter 11 cases," Lehman Brothers said in its suite filing.

Lehman filed for Chapter 11 protection on Sept 15, 2008 with $639 1000000000 of assets, sextet times as such as whatever another U.S. consort to go bankrupt.

It oversubscribed its maturity assets banking papers within life of the filing to Barclays Plc, and has since oversubscribed another assets or prepared them for understanding to improve money for repaying creditors.

Earlier this month, Lehman Chief Executive Bryan Marsal estimated that Lehman would clear discover most $60 1000000000 on its $322 1000000000 in allowed claims, or most 18.6 cents on the dollar, though whatever creditors module intend more and others less.

That is a higher evaluate than an judge the consort gave last assemblage to clear backwards on cipher 15.8 cents on the dollar.

More than $1 trillion in claims were filed against Lehman after its collapse, but many were dismissed because of errors and duplications.

The competing organisation filed by bondholders in Dec would have accumulated their possess payouts to 24.5 cents on the dollar, while derivatives creditors would obtain 25.7 cents.

It was unclear in the newborn organisation how such derivatives creditors stood to recover, in conception because the consort planned a newborn arrangement of creditors.

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

(Reporting by Tom Hals; Additional news by Caroline Humer and Dena Aubin in New York; Editing by Erica Billingham)

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