High Court rules it cannot endorse PwC proposal to speed up the return of assets to creditors, but firm says it may appeal
Accountancy Age, 25 Aug 2009
Administrators have conceded the High Court's refusal to endorse a plan which would have accelerated the return of assets to Lehmans creditors is a 'setback'.
The scheme of arrangement wanted to modify certain rights of clients whose property is held on trust by Lehman Brothers International Europe.
However, the High Court decided it had no jurisdiction to sanction a scheme which modified clients in this manner.
Steven Pearson, joint administrator for LBIE, said: 'The proposed scheme sought to significantly reduce the period clients have to wait before they get their assets back.
'This judgement is disappointing as it could create further delay for many of LBIE’s clients.'
The PwC team is now poring over the judgement with its legal advisers and creditor working group before deciding whether to amend the proposal alongside a potential appeal.
Steven Pearson, Joint Administrator, PricewaterhouseCoopers LLP, said: 'While this is a setback, I am determined to find a way to get these assets back to clients as soon as possible.' Steven Pearson
Pearson added: 'While this is a setback, I am determined to find a way to get these assets back to clients as soon as possible.'
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