Lehman Brothers' administrators settle with Citigroup on $2.5bn
PwC administrators recover more than £30bn for creditors following latest deal
PWC ADMINISTRATORS of Lehman Brothers International Europe have managed to secure a further $2.5bn (£1.3bn) following a settlement with Citigroup.
When it collapsed in 2008, Lehman Brothers International Europe (LBIE) became the largest bankruptcy filing in US history.
PwC administrators have now managed to claw back more than £30bn for creditors.
The latest deal is over assets held by Citigroup’s custody business and will see the bank immediately begin transferring assets to LBIE.
Paul Copley, PwC restructuring partner who led the settlement said: “This is by far the largest single deal we have undertaken and easily the most complex to negotiate and then structure, given the sheer scale of the legacy relationship between Citigroup and LBIE.”
After the collapse of Lehman Brothers, Citigroup held onto assets while it assessed exposure to the European arm of the administration.
As part of the deal, both Citi and the administrators will release each other from all other claims and liabilities.