Lehman Brothers, the collapsed investment bank is now in the hands of Tony Lomas, who oversaw the administration of MG Rover.

Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners from PricewaterhouseCoopers were appointed as joint administrators to Lehman Brothers International Europe at the end of last week.

Lehman Brothers Holdings Inc announced today that it intends to file a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York.

Lehman Brothers, the principal UK trading company in the Lehman group, was placed into administration, together with three other group companies.

Lomas said: 'Because the group managed its funding on a global basis the UK trading operation found itself unable to meet its obligations when the flow of funds dried up last night. Our priority now is to work with management and trading counterparties to agree the manner in which the assets and liabilities will be handled.'

'I would also like to emphasise that a number of group companies remain solvent and will continue to trade.'

Lehman's subsidiary Neuberger Berman and Lehman Brothers Asset Management will continue to conduct business as usual and will not be subject to the bankruptcy case of its parent, and its portfolio management, research and operating functions remain intact, Lehman Bros said in a statement today.