Lehman divisions swap $1bn of assets

The administration team of Lehman Brothers European arm have sealed a $1bn (£610m) asset swap with their Japanese counterparts.

Following months of negotiation between the PricewaterhouseCoopers team handling Lehman Brothers International Europe and Lehman Brothers Japan Inc, an exchange of custody assets has taken place between the two parties.

Approximately $1bn of assets were passed by LBIE to LBJ and $1bn from LBJ to LBIE. The exchange was completed on 11 December following intensive discussions.

"The exchange of assets represents a significant step forward for the joint administrators of LBIE, as client assets returned by LBJ will now be made available for distribution under the Claims Resolution Agreement between LBIE and claimants to Trust assets," PwC said today.

A Bar Date Order for claims to Trust Assets was made by the High Court of England and Wales on 15 December and was set as 19 March 2010.

Steven Pearson, joint administrator and Partner at PricewaterhouseCoopers LLP, said:

"This is a significant result for the estates and clients of both entities and demonstrates the clear benefits of open and constructive dialogue between the former Lehman Group companies.

"We are keen to progress our ongoing negotiations with other affiliates around the world to preserve value for all the Lehman estates and to benefit clients."