Lehman Brothers Holdings Inc. said bond insurer Ambac Financial Group Inc. 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 Inc., 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.

A hearing on the settlement, which requires bankruptcy court approval, is scheduled for Oct. 20.

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

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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