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13 Oct 2011 09:30
The Joint Administrators of Lehman Brothers International (Europe) – in Administration (“LBIE”) have today updated the creditor community with their third annual progress report, giving details of their progress in the last six month period of the Administration.
Tony Lomas, Joint Administrator and partner at PwC said:
"The past six months have seen significant progress on a number of key issues. In the period we settled our claims against Citigroup relating to some £2 billion of cash and assets held around the world, the majority of which has now been recovered. This has been the single, largest settlement of its kind, to date, in the Administration.
"In recent weeks, we have also materially progressed our discussions with a number of other Lehman Affiliates. We have agreed claims between LBIE and a number of Hong Kong based Lehman companies and we have reached agreement in principle with LBHI and other US based Lehman companies that are in Chapter 11 bankruptcy proceedings. We have very substantial claims against a number of other Lehman Affiliates which we are also pursuing in an effort to avoid litigation.
"In the coming months, a number of important legal appeals will be heard in the UK Courts, including the Supreme Court proceedings relating to Client Money. The outcome of these cases will materially influence the value and timing of the eventual recovery for ordinary unsecured creditors. Notwithstanding these major, continuing difficulties, we remain hopeful of making a first, interim distribution to creditors at some stage during 2012."
Further key achievements to date:
- A further £1.8bn of cash has been realised from house assets in the last six months, bringing the total cash realised to date to some £12.6bn;
- The Consensual Approach for the agreement of unsecured claims continues to make progress with a further 309 Claims Determination Deeds to creditors with an aggregate claims value of approximately £1.5bn. Some £1bn of claims have now been formally agreed in respect of this;
- 1,500 lines of Client Assets have been returned in the period meaning the Administrators have now returned over £13bn in Client Assets and collateral releases to date;
- LBIE’s house claim of $8.9bn has been denied by LBI, so LBIE has filed a formal objection and a scheduling order for trial has been agreed. LBI also submitted a revised inbound claim of £8.8bn against LBIE and this is now under review.
ENDS
Notes to Editors:
1. The full report can be downloaded at:
http://www.pwc.co.uk/eng/issues/lehmans_joint_administrators_progress_report_140409.html
2. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, were appointed as Joint Administrators to Lehman Brothers International Europe and other related entities on 15 September 2008. By an Order made on 30 November 2009 in the High Court, a change was made to the named individuals appointed as Administrators of the Lehman Brothers companies in Administration . With effect from 30 November, the same five PwC partners are the Administrators of all 19 companies; the five are Tony Lomas, Steven Pearson, Dan Schwarzmann, Mike Jervis and Derek Howell, all of whom are licensed to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.
3. The Joint Administrators have been appointed to wind down the business in as orderly a manner as possible.
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