Creditors of Lehman Brothers Australia have approved a scheme of arrangement resulting in the recovery of US$45 million and A$3 million from insurance policies held in the United States and Australia.Approval of the scheme is something of a breakthrough for the LBA's liquidators, Steve Parbery and Marcus Ayres of PPB Advisory, after a scheme put to creditors in June was blocked by one of LBA's creditors, Lehman Brothers Holdings International.PPB said in a media statement yesterday that the settlement of the insurance claim paved the way for settlement discussions in the Wingecarribee class action proceedings. Around 70 local councils, charities and other organisations brought a class action against LBA over the sales of credit derivatives that became illiquid during the financial crisis. Last year, the Federal Court made a finding that LBA had engaged in misleading and deceptive conduct, was negligent and was in breach of its fiduciary duties when it sold collateralized debt obligations to its clients. The fuinding said that LBA was liable to compensate the group for their losses.PPB said there was a strong expectation that the class action discussions could be concluded early next year and a distribution made to creditors.