Lehman Brothers Limited (in administration)

This site provides information regarding the progress of the Administration of Lehman Brothers Limited (in administration) (“LBL”) and will be updated with new information as and when such information becomes available.

Z Hussain, GE Bruce, DJ Kelly and EJ Macnamara were appointed as Joint Administrators of LBL to manage its affairs, business and property as agents without personal liability. The Joint Administrators are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

The Administrators’ appointment was due to end on 30 November 2022. As there are remaining matters to be dealt with in the administration, the Administrators filed an application to extend the administration and an extension was granted until 30 November 2025. If you would like to see the detailed reasons in support of the application or attend the hearing, please contact uk_lbl_enquiries@pwc.com

Untraced creditors

There are a number of creditors with claims admitted for dividend purposes, which we are unable to make a distribution to as their last known address is no longer correct and therefore despite best efforts we have been unable to contact or pay their full entitlement.

If you think you may be one of these creditors, please complete the below form and return it to us by email to uk_lbl_enquiries@pwc.com, or by post to Lehman Brothers Limited in administration, ℅ PwC, 8th Floor Central Square, 29 Wellington Street, Leeds, West Yorkshire, LS1 4DL.

Untraced creditors form

Update to creditors - 15 February 2021

Clawback proceedings

Creditors will be aware of the "Clawback Proceedings", from our six-monthly Progress Reports.

The parties to the Clawback Proceedings agreed on a stipulation of facts and completed discovery and deposition processes, in preparation for a Summary Judgment motion that was scheduled to be heard on 13 January 2021.

During the period leading to the Summary Judgment motion hearing, negotiations continued between LBHI, LBL, and the other Lehman UK affiliate entities that were party to the Clawback Proceedings, with a view to settlement of those proceedings. A settlement was agreed between the parties and was approved by the New York Bankruptcy Court on 21 January 2021. Pursuant to the terms of the Settlement Agreement, the Clawback Proceedings will be dismissed when all of the payment obligations have been discharged. As part of the terms of the settlement, LBL agreed to make a payment of $112 million to LBHI. Of that sum, $96m has been paid and $16m will be paid in week commencing 15 February 2021.

Distributions to creditors

Following settlement of the Clawback Proceedings, LBL is now in a position to pay a further distribution to creditors.

Creditors will be aware that to date, the principal amount of all admitted unsubordinated claims has been paid in full, together with 31.4% of creditors respective entitlement to Statutory Interest.

Certain affiliate creditors of LBL have agreed to subordinate their remaining Statutory Interest entitlements to the entitlements of other creditors who have submitted proofs of debt. The distributions to be paid are therefore:

(a) To ordinary unsecured creditors whose claims have been admitted to rank for dividend, 68.6% of their respective entitlements to Statutory Interest to bring the cumulative amount paid to 100% of their respective entitlements; and

(b) To creditors who have agreed to subordinate their remaining entitlements to Statutory Interest, 33.6% of their respective entitlements to bring the cumulative amount paid to 65% of their respective entitlements.

Creditors have been requested to confirm bank and other details. Payments are anticipated to be made in March, subject to receipt of information requested.

If you have not received our communication regarding confirmation of bank account details please contact us at uk_lbl_enquiries@pwc.com

Update July 2020

Creditors will be aware from recent Progress Reports, including our most recent Progress Report dated 9 April 2020, of LBL's interest in an application for directions made to the Court by the Administrators of LB Holdings Intermediate 2 Ltd (in Administration) ("LBHI2").

LBL's interest is as the largest ordinary unsecured creditor of LBH Plc. The largest asset of LBH Plc remaining to be realised is a subordinated claim in the estate of LBHI2. The application for directions by the Administrators of LBHI2 concerned (amongst other things) whether LBH Plc's subordinated claim ranked in priority to another subordinated claim, equally with (i.e., pari passu) that other claim, or junior to it.

The Court has now handed down judgment and has held (amongst other things) that LBH Plc's claim in LBHI2 ranks in priority.

It remains to be seen if this judgment will be appealed. However, if the judgment is not appealed, or an appeal in relation to the ranking of the subordinated claims in LBHI2 is ultimately unsuccessful, LBH Plc in due course is likely to be able to pay significant additional amounts to LBL, and in turn LBL is likely to be able to pay material additional amounts of "statutory interest" to its creditors, as described in the Progress Report.

A fuller summary of the judgment and of its commercial consequences are on the website for LBH Plc together with a copy of the full judgment:

https://www.pwc.co.uk/services/business-restructuring/administrations/non-lbie-companies/lbh-plc-in-administration.html

A copy of our most recent progress report may be found below.

We will further update creditors in due course and in any event in the next Progress Report.

Initial payment of interest for post-Administration period

The Joint Administrators gave notice on 6 August 2018 of their intention to declare an initial payment in respect of interest for periods after the date of insolvency ('statutory interest').

On 13 September 2018 an initial distribution of 31.4% of creditors' entitlements to statutory interest was declared.

Final dividend

The Joint Administrators also gave notice on 6 August 2018 of their intention to declare a final dividend to unsecured creditors of 100p in the £.

Notice was given that the last day for creditors to submit claims in the administration was 28 August 2018. The Joint Administrators are not obligated to consider new claims submitted after 28 August 2018.

On 13 September 2018 a final dividend of 100p was declared.

Second interim dividend

On 7 August 2017 the Joint Adminstrators gave notice of their intention to declare a second interim dividend, which was declared on 6 September 2017.

First interim dividend

On 8 July 2014 the Joint Administrators gave notice of their intention to declare a first interim dividend, which was declared on 15 December 2014.

Application for leave to pay distributions to creditors

The Joint Administrators made an application to the High Court for leave pursuant to Paragraph 65 of Schedule B1 of the Insolvency Act 1986 to make payments by way of distributions to unsecured creditors. On 20 June 2014 an order was granted giving the Joint Administrators leave to pay distributions to (non preferential) unsecured creditors of LBL. A copy of the order can be found here.

All Creditors

Please ensure that you notify LBL of any changes to your contact details (including your address, telephone number and email address) by emailing them to uk_lbl_enquiries@pwc.com.

Creditors with employment related claims

An updated Frequently Asked Questions document for employment-related claims is available to download here.

Click here for a summary of the expected tax treatment of employment related claims.

Contact Details:

Address:

LBL Creditor Team
PricewaterhouseCoopers LLP
Waterfront Plaza
8 Laganbank Road
Belfast
BT1 3LR

Email: uk_lbl_enquiries@pwc.com

LBL Claims consolidators

For the benefit of creditors who may wish to sell their debts, the Joint Administrators have decided to make available contact details for specialist consolidators that have acquired from creditors a number of claims against LBL. Please note that the Joint Administrators are unable to provide any advice or guidance in relation to your decision on whether or not to sell your claim. You might wish to take your own independent advice in this respect.

Contact Details

Entity: Farallon Capital Management, L.L.C.

Contact: Raj Patel and Michael Linn
Address: One Maritime Plaza, Suite 2100, San Francisco, CA 94111, USA
Phone: +1 415 421 2132
Email: LOps2@faralloncapital.com

Entity: IlliquidX Securities Limited
Contact: Aleksandr Dobrynin
Address: 80 Fleet Street, EC4Y 1EL, London, UK
Phone: +44 207 832 0161
Email: dobrynin@illiquidx.com

Entity: King Street Capital Management, L.P.
Contact: Bank Debt
Address: 65 East 55th Street, 30th floor, New York, NY 10022, USA
Phone: +1 212 812 3140
Email: bankdebt@kingstreet.com

Entity: Liquidity Solutions, Inc.
Contact: Jeff Caress
Address: One University Plaza, Suite 312, Hackensack, NJ 07601, USA
Phone: +1 201 968 0001 x113
Email: jcaress@liquiditysolutions.com

Entity: Primeshares World Markets, LLC
Contact: Daniel Ginsberg
Address: 261 Fifth Avenue, 22nd Floor, New York, NY 10016, USA
Phone: +1 212 889 3015
Email: dg@primeshares.com

Entity: Tavira Securities Limited
Contact: Alexander Paulick
Address: 88 Wood Street, London, EC2V 7DA, UK
Phone: +44 203 642 2799
Email: alexander.paulick@tavirasecurities.com

Entity: Varde Investment Partners LP
Contact: Matt Mach
Address: 901 Marquette Avenue South, Suite 3300, Minneapolis, MN 55402, USA
Phone: +1 952 374 5107
Email: mmach@varde.com

Updates

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

Pursuant to Rule 18.6 of the Insolvency Rules (England and Wales) 2016, the Joint Administrators' progress reports issued to date have been sent to all known creditors and counterparties. The reports provide an account of the steps that have been taken in the LBL Administration in the relevant six month period. To view the past reports please click on the applicable link below:

Progress reports 2008 to 2012

Click here to read previous progress reports

^{Z Hussain, GE Bruce, DJ Kelly and EJ Macnamara were appointed as Joint Administrators of Lehman Brothers Limited to manage its affairs, business and property as agents without personal liability. The Joint Administrators are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.}

^{The Joint Administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics.}

^{The Joint Administrators may act as controllers of personal data as defined by UK data protection law depending upon the specific processing activities undertaken. PricewaterhouseCoopers LLP may act as a processor on the instructions of the Joint Administrators. Personal data will be kept secure and processed only for matters relating to the Joint Administrators’ appointment. Further details are available in the privacy statement on the PwC.co.uk website or by contacting the Joint Administrators.}