PwC returns to court to fight for Lehmans plan
Firm appeals for plan to distribute money to creditors faster
Lehman Brothers administrator PricewaterhouseCoopers returns to court today
to once again fight for approval of its plan to distribute money to creditors
faster.
In August, the High Court dismissed proposals to speed up the handing out of
money owed to hedge funds, with the firm now appealing that decision.
About $9bn still needs to be returned to creditors, but various discrepancies
and poor record keeping mean that it is unclear who should get what, and the
money isn’t enough to cover all demands.
PwC’s proposal, which has wide support from hedge funds, would see the firm
distribute the money in the most equitable way as fast as possible, in return
for various hedge funds dropping legal action to obtain its money.
However the Big Four firm must have legal approval for the plan before it can
move forward. Otherwise it will be forced to negotiate individually with each
creditor – a costly and time consuming process.
Further reading:
Lehman
administrators bid to end court action