This update concerns the application issued by the Joint Administrators on 1 May 2009 concerning LBIE's obligations in relation to the handling of client money received prior to the time of administration (the "Application") and its relevance to creditors of the general estate.

The Administrators are currently working with a number of parties who have notified them of their interest in the Application in an effort to identify appropriate representative respondents. 

A number of clients have come forward who appear to be interested in representing the interests of those who may have claims against the client money pool. However, the Administrators have not yet identified any creditor who is firmly interested in representing the general estate. 

As has been noted previously, one of the issues in the Application addresses the extent to which (if at all) the LBIE general estate is required to top-up the client money pool. A further issue concerns whether amounts may be withdrawn from the client money pool and added to the general estate. The amounts involved are potentially significant. Since the Administrators wish to remain neutral in the Application, they would like a creditor to come forward to represent the general estate. If an appropriate creditor comes forward, then the Administrators would support an order requiring their reasonable legal costs to be met by the general estate.

The Administrators therefore encourage any creditor interested in putting itself forward as a representative respondent of the general estate to e-mail clientpositionresponses@lbia-eu.com as soon as possible and in any event prior to 3 July 2009.