Lehman Brothers Holdings plc (in administration)

This site provides information regarding the progress of the administration of Lehman Brothers Holdings plc (“LBH”) and will be updated as and when new information becomes available.

AV Lomas, SA Pearson, DY Schwarzmann and MJA Jervis were appointed as Joint Administrators of LBH on 15 September 2008 to manage its affairs, business and property as agents without personal liability.  DA Howell was appointed as an additional Joint Administrator by order of the court on 30 November 2009.  All the Joint Administrators (the “Administrators”) are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

Based on current information, the Administrators anticipate that there will be sufficient realisations to allow a distribution to be made to unsecured creditors, but they are not in a position to give an estimate of the timing or quantum of any dividend. Furthermore, creditors should be aware of the following:

i. On 13 September 2010 the Pensions Regulator’s determination panel issued a Financial Support Direction (“FSD”) against LBH, and five other entities, in relation to the Lehman Brothers Pension Scheme.  The FSD requires financial support to be provided to the pension scheme, in relation to the scheme’s deficit.  LBH is appealing against this decision.  A FSD does not create a debt due from the targeted company (LBH) to the pension scheme, but such a debt can be imposed by the Pensions Regulator at a later stage of the process.  At present it is not clear how the liability will be divided among the targeted entities.  Any debt would come into existence after the date of Administration, and this creates uncertainty as to the debt’s legal status.

ii. Lehman Brothers UK Capital Funding LP (ISIN: XS0215349357), Lehman Brothers UK Capital Funding II LP (ISIN: XS0229269856) and Lehman Brothers UK Capital Funding III LP (ISIN: XS0243852562) are funds guaranteed by LBH.  Investors of these funds are entitled to submit a claim against LBH for the amount they have invested in each fund.  However, the guarantee provided by LBH is subordinated to LBH’s ordinary unsecured creditors and, accordingly, any claim an investor has will be a subordinated claim.  Unsecured creditors will have to be paid in full before any distribution can be made to subordinated creditors, thus lowering the likelihood of a dividend being declared to subordinated creditors.  The subordinated creditors’ claims will only be adjudicated upon if the Administrators ascertain that a dividend may be payable.

LBH Claim Submission Information

LBH currently has no formal legal process for agreeing creditors’ claims.  However, the Administrators are collating information with regards to all creditor claims, so that when a formal legal process is in place, adjudication of these claims may be completed in a shorter timeframe.  Therefore, we have provided an LBH Statement of Claim form which can be downloaded here.  The Administrators request that all claimants use this form for consistency and future evaluation.  All claims should be submitted with full supporting documentation.  Please execute your Statement of Claim and upload as a PDF and email to the following address: LBHplc@lbia-eu.com .  Claims received by the Administrators will be held on file for future adjudication.

Updates

Creditors are updated on the progress of the administration of LBH through the Administrators’ six monthly progress reports and via this website.  We encourage counterparties who believe they may be entitled to claim against LBH to continue to check this website for relevant information. 

Pursuant to Rule 2.47 of the Insolvency Rules 1986, the Administrators' progress reports issued to date have been sent to all known creditors and counterparties.  Each report provides an account of the steps that have been taken in the administration of LBH over a six month period.  To view the past reports please click on the applicable link below:

Contacts

All queries to the Administrators of LBH should be sent to:  LBHplc@lbia-eu.com