Ambac Assurance drops $6.1 billion in claims against Lehman Lehman Brothers Holdings Inc (Other OTC:LEHMQ.PK - News) said Ambac Assurance Corp agreed to withdraw claims worth more than $6.1 billion against the company as part of a global settlement.
The deal has the support of Lehman's unsecured creditors and is yet to be approved by the bankruptcy court, papers filed late on Tuesday showed.
As part of the settlement, the two parties have agreed to release each other from any liability under certain disputed derivatives transactions.
"This global settlement is the result of approximately three months of arm's length, good faith negotiations," Lehman said.
Ambac Assurance's parent, Ambac Financial Group Inc (ABK - News), said in March that it may have to file for bankruptcy if it does not restructure its liabilities by the second quarter of 2011.
The bond insurer, whose toxic assets worth $64 billion were seized by Wisconsin state regulators, is in dire need of capital.
Shares of Ambac have shed more than 26 percent since the seizure of its assets on March 25 till Tuesday's close.
In September, Lehman said it worked to slash claims on the estate and that its differences with creditors are "narrowing."
Lehman filed for Chapter 11 two years ago, in the largest-ever U.S. bankruptcy.
British bank Barclays Plc (LSE:BARC.L - News) bought Lehman's main U.S. brokerage business after the bankruptcy filing, and Lehman's other assets are being managed and unwound while operating under bankruptcy protection.
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