Client Money Application - Case Management Conference 24 & 25 September - 02/10/09

This update concerns the application issued by the Joint Administrators on 1 May 2009 seeking directions from the Court concerning LBIE's obligations in relation to the handling of client money received prior to the time of administration (the "Client Money Application").

Work is progressing on the Client Money Application in preparation for the substantive hearing, which is due to start on 9 November 2009 and is expected to continue for three to four weeks. A further procedural hearing was held on 24 and 25 September 2009 at which:

• some changes were made to the parties appointed as representative respondents, including the appointment of Goldman Sachs GSIP Master Credit Fund (Ireland) Ltd and the removal of Chilton New Era Partners LP;
• the issues which are the subject of the Application were slightly amended;
• case management directions were given; and
• the representative respondents were awarded periodic interim payments on account of the legal costs incurred by them in connection with the Client Money Application.

For further details, a copy of the Order made by the Court is available here.

Prior to this procedural hearing, a further witness statement made on behalf of the Joint Administrators was filed with the Court on 17 September 2009. A copy of this statement is available, and the exhibits are available here.

The details of the representative respondents as currently appointed are set out below. In respect of some classes, more than one representative respondent has been appointed where clients within a particular class may have differing interests.

- The representative respondents for the class of clients of LBIE for whom some client money was segregated at 7.56am on 15 September 2008 ("Segregated Clients") are:

• GLG Investments plc: sub-fund GLG European Equity Fund;
• Paragon Capital Management Fund Limited; and
• Goldman Sachs GSIP Master Company (Ireland) Ltd.

- The representative respondents for the class of clients of LBIE for whom money arguably should have been segregated as client money at 7.56am on 15 September 2008 but was not ("Unsegregated Clients") are:

• CRC Credit Fund, Limited; and
• Claren Road Credit Master Fund Ltd.

- The representative respondent for general creditors - i.e. clients and creditors for whom no client money was segregated at 7.56am on 15 September 2008 and for whom LBIE was not required and had not agreed to segregate client money (the "General Estate") - is Hong Leong Bank Bhd.

For further information, including in respect of which issues these representative respondents have been appointed and details of their particular interests, please refer to the Orders dated 16 July, 27 July and 25 September.

Any client or creditor of LBIE who wishes to have a particular argument advanced on their behalf at the substantive hearing should notify the appropriate representative respondent's solicitors as soon as possible, having regard to the fact that each respondents' skeleton argument for the substantive hearing is required to be filed by 26 October 2009.