Forward Motions

On Tuesday in Manhattan, the trustee unwinding Lehman Brothers Inc. will ask a bankruptcy judge for permission to pay nearly $2 billion to the defunct brokerage’s unsecured creditors, which would be the third such distribution since he paid off the brokerage’s customers.

If approved by Judge Shelley Chapman, that would bring the total amount returned to creditors to more than $8 billion, a recovery of about 35 cents on the dollar. Combined with distributions made to customers, the total amount recovered in the brokerage’s liquidation would be about $114 billion.

Baha Mar Ltd., the bankrupt developer of a $3.5 billion unopened resort in the Bahamas, will go before two courts Monday—one in the U.S. and one in the Bahamas.

The Supreme Court of the Bahamas will consider whether to recognize the company’s U.S. bankruptcy filing, a decision that could finally give the company access to $80 million in bankruptcy financing from company owner Sarkis Izmirlian. But the prime minister of the Bahamas said Thursday that the government will oppose that request and force it into a Bahamian court proceeding.

On Monday in Manhattan, U.S. Bankruptcy Court Judge Shelley Chapman will be asked to approve a $1.28 billion settlement between Lehman Brothers Inc. and Barclays PLC, which bought Lehman’s brokerage business days after the investment bank’s 2008 collapse.

Investors face a deadline of next Friday to bid on Houston-based Dune Energy Inc.’s oil-drilling operations.

Lawyers are preparing for a June 30 auction to sell the company, which oversees more than a dozen drilling sites that sit atop an estimated 93.1 billion cubic feet of natural gas equivalent, according to earlier documents filed in U.S. Bankruptcy Court in Austin, Texas.

On Wednesday, biofuel maker KiOR Inc. will go before a Wilmington, Del., bankruptcy judge to seek final approval of its chapter 11 reorganization plan.

Under the proposed plan, KiOR will turn over control of its business to lender Pasadena Investments LLC—a company affiliated with venture capitalist and KiOR co-founder Vinod Khosla—in exchange for $16 million in debt forgiveness.