This update concerns the presentation given by the Joint Administrators to members of the MFA in New York on 5 August 2009 and also to AIMA in London on 7 August 2009. The objective of the presentations was to provide members of the industry bodies who may have an interest in the trust assets held by LBIE with an overview of the proposed scheme of arrangement (the "Scheme").
For background information on the Scheme, please see the client money and assets update of 15 July 2009 .
As previously explained to creditors, the current process for bilateral returns of client assets is lengthy and onerous as well as lacking in finality regarding dealings between LBIE and its customers. These issues have previously been explained in the second witness statement made by Steven Pearson, on 25 February 2009 in which the Joint Administrators explained their intention to propose a scheme of arrangement in respect of Trust Property. Click here to review such statement. The Scheme is intended to deal with these issues as described in the second witness statement made by David Ereira on 14 July 2009 in respect of the Scheme. Click here to review such statement.
The presentation introduced and described some of the key provisions of the Scheme. The presentation is NOT:
The presentation also provided an opportunity to update attendees on the general progress made by the Joint Administrators and to put the Scheme into the context of the wider LBIE Administration.
Representatives of the SIPA Trustee to Lehman Brothers Inc. were also in attendance at both meetings and made a short presentation in respect of the status of LBIE's clients claims in the US process.
There were a large number of questions that were asked at the meetings. These are being summarised, along with answers, and will be posted on this website shortly.
Please click here to access a copy of the Joint Administrators' presentation to MFA and AIMA.
The Joint Administrators will continue to communicate with creditors through the PwC Lehman Brothers International (Europe) (in administration) website. Please continue to check the website for information on the Scheme and other matters relating to the administration of LBIE.
Please direct any questions you have about the Scheme to generalqueries@lbia-eu.com
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Lehman Brothers filed for bankruptcy in the US courts on 15 September 2008. PwC were appointed as administrators, on the largest insolvency in history.
Omnibus Trust, Affiliates, Client Assets and Client Money archive folders can be found here.
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