June 18 (Reuters) - Reserve Management Co said it would distribute as much as $400 million to shareholders of one of its funds that "broke the buck" -- where the fund's net asset value drops below $1 a share -- last September.
The company on its website said its second distribution to holders of the Reserve International Liquidity Fund represents about 44 percent of the remaining total assets of the fund as of the close of business on Monday.
About $507 million will remain in the fund, which includes the Lehman Brothers Holdings Inc securities, which are valued at zero, the company said.
The distribution will begin on June 19.
Reserve Management Co's Reserve Primary Fund, which had been one of the oldest U.S. money funds, broke the buck back in September 2008 amid losses on issues by now-defunct Lehman Brothers.
A U.S. district court set the objection and hearing dates on a Securities and Exchange Commission's plan concerning the distribution of the Reserve Primary Fund's remaining assets, the fund's board of trustees said in a statement on Monday. [ID:nN15243852] (Reporting by Ajay Kamalakaran in Bangalore; Editing by Jon Loades-Carter)