BusinessBusiness RecoveryAdministrators claim another £2bn for Lehmans creditors

Administrators claim another £2bn for Lehmans creditors

Administrators from PwC cite progress in handling Lehman Brothers International Europe

Administrators have recouped another £2bn for Lehmans creditors in the past six months.

In the latest update on the administration of Lehman Brothers International Europe (LBIE), joint administrator and PwC partner Tony Lomas (pictured) said claims against Citigroup totalling £2bn in cash and assets have now been recovered.

The settlement was the largest to date in the administration.

Discussions with other Lehman affiliates have been agreed in principle, said Lomas, including with Lehman Brothers Holding Inc – the holding company against which LBIE’s administrators had made a claim for $8.9bn (£5.7bn). The holding company had subsequently made a claim against LBIE for $8.8bn.

Claims worth an aggregate of approximately £1.5bn have settled with creditors during the six months, with £1bn formally agreed in their respect.

A Supreme Court hearing where former LBIE clients are attempting to access creditor funds, plus a number of other cases, will strongly influence the value available in the pot for PwC to dish out to those who have made claims.

“The outcome of these cases will materially influence the value and timing of the eventual recovery for ordinary unsecured creditors,” said Lomas.
“Notwithstanding these major, continuing difficulties, we remain hopeful of making a first, interim distribution to creditors at some stage during 2012.”

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