PwC dealt Lehmans payback blow by High Court
High Court rules it cannot endorse PwC proposal to speed up the return of assets to creditors, but firm says it may appeal
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.
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.’
Further reading:
PwC
seeks court approval for Lehman plan