Libyans agree £50m Lockerbie claims

LIBYA is understood to have agreed to pay more than £50m to settle claims brought by insurance syndicates at Lloyd's of London and the bankrupt Pan Am airline.

The claims relate to the downing by terrorists of flight 103 over Lockerbie in Scotland in 1988.

Equitas, the company that manages Lloyd's pre-1992 outstanding liabilities and recoveries, and Pan Am's trustee in bankruptcy sued the Libyans in the Scottish courts last year for $375m (£196m) plus interest. Settlement talks have been in progress for months.

A deal could be announced this week. It is believed all sides have agreed in principle to the size of the settlement, which is subject to a confidentiality agreement.

Equitas could obtain the largest part of the payment, even though last year it claimed $32m plus interest compared with the $343m claimed by Pan Am's trustee.

Lloyd's paid £600m to relatives of the 270 victims of the terrorist attack and Pan Am. The airline went bankrupt in 1991.