Lehmans administrators lay down $11bn gauntlet

The joint administrators of Lehman Brothers European arm have floated an asset recovery plan in the hopes of returning $11bn (£6.6bn) to creditors.

The PricewaterhouseCoopers team will greenlight the plan if 90% of creditors support it.

"The proposal, formally called the 'Claim Resolution Agreement', was sent to affected clients on 24 November and provides that clients will get their Trust Assets returned and positions closed out without the need to either post further collateral or to indemnify LBIE," PwC said.

Steven Pearson, joint administrator said: "This agreement has been negotiated over the last 6 months and will now allow us to return a further $11bn or so of Trust Assets to their rightful owners.

"The Administrators have worked closely with the creditors’ committee in developing the Claim Resolution Agreement and have the unanimous support of the creditors’ committee. To benefit from these arrangements it is essential that affected clients take the time to understand the proposals and positively confirm their support."