Two Lehman Brothers firms made an agreement in principal to settle claims that amount to $38 billion, on Friday.
According to the Associated Press, this agreement is still subject to documentation, approval by the U.S. Bankruptcy Judge James Peck and an order of the English High Court.
"This is a critical milestone for customers because, if approved by the court, the agreement sets the stage for distribution that will provide for 100% recovery of customer property," Lehman Brothers Inc. trustee James Giddens said in a statement, according to the Associated Press.
Lehman Brothers International and Lehman Brothers Inc. also said in the meeting on Friday that their agreement would give them permission to go ahead with plans to allocate and distribute assets to customers and creditors.
The Associated Press reported that the firm hit the biggest corporation bankruptcy in U.S. history as it collapsed in 2008, when the nation was facing its hardest economic downfall.
Lehman's failure to quickly revive and get back on its feet caused a panic among other financial firms.
They feared that similar losses would happen to them as well.
The government quickly offered a hand to help with billions of bailout money and subsidies to prevent other Wall Street Banks from failing, the Associated Press confirmed.
