Lehman Brothers Holdings said bond insurer Ambac Financial Group has dropped claims worth more than $6.1 billion against the company, according to court filings.

Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan must approve the agreement, which Lehman said has the support of its unsecured creditors.

Under the agreement, Ambac Assurance, Ambac Financial’s largest operating subsidy, would drop its $6.1 billion claim against Lehman and Lehman agreed to withdraw its claim for tens of millions of dollars from Ambac Assurance.

British bank Barclays purchased Lehman's main U.S. brokerage business after the investment bank filed for Chapter 11 protection on Sept. 15, 2008, and the bankruptcy court is determining the fate of Lehman's other assets.

As reported by StructuredFinanceNews.com on Friday, the Wisconsin insurance commissioner’s office, meanwhile, filed a rehabilitation plan for Ambac Assurance. Insurance Commissioner Sean Dilweg has established a segregated account for $68 billion worth of policies.

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