A LEGAL CLAIM has been filed against Lehman Brother creditors to force them into revealing the amount they are owed by the collapsed bank.
The so called Ad-Hoc group includes hedge and pension funds such as Paulson & Co, Pimco and Calpers. The group argue that banks and other hedge funds might have interests not known to the court and could be using “a multitude of attorneys” to hide the fact they are co-ordinating efforts, the Financial Times reports.
“The prospect of conflicting motives arising during plan negotiations and later plan-related litigation is considerable. To promote fundamental fairness and transparency in these cases…any party seeking to participate in plan litigation [should] be required to provide comprehensive disclosure regarding their economic interests,” wrote Gerard Uzzi of firm White & Case, representing Ad Hoc in the court filing.
Head of Editorial Kevin Reed looks at the week's news, including the BHS and Austin Reed administration, Accountex and much more.
MPs launch probe into the sale of BHS that will look at role of auditors and accountancy firms in sale process
A short moratorium will give struggling companies a chance to be open with their creditors and negotiate a way out of their problems transparently, says Sykes
Out of a dozen sectors profiled only oil and gas and manufacturing were deemed to have a higher than normal risk of insolvency