Client Assets Update - Bar Date Sanctioned - 15 December 2009

This update concerns the Joint Administrators' application (the "Application") made to the High Court, regarding certain assets held on trust by LBIE. Further details in relation to the Application were set out in the update posted on 27 November 2009 and updated on 11 December 2009.

In addition to the witness statement referred to in the 27 November 2009 update, the Joint Administrators filed a further witness statement in support of the Application. A copy of that witness statement can be accessed here.

A public hearing of the Application took place on 14 December 2009 at the Royal Courts of Justice, Strand, London. Counsel for four hedge funds (Newport Global Opportunities Funds LP, Newport Global Credit Fund (Master) LP, PEP Credit Investor LP and Providence TMT Special Situations Fund LP) appeared in opposition to the Application.

The Court granted the Order sought by the Joint Administrators subject to certain amendments including that the Bar Date be 19 March 2010 instead of 26 February 2010. Click here to access the Court's Order.

ACCORDINGLY, ALL THOSE CLIENTS OF LBIE WHO BELIEVE THAT THEY HAVE CLAIMS TO TRUST ASSETS (AS DEFINED BELOW) ARE REFERRED TO, AND MUST RESPOND TO, THE FOLLOWING NOTICE:

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Lehman Brothers International (Europe)

(in administration)

Notice re. claims to client assets

Notice is hereby given that, on 15 December 2009, the High Court of England and Wales made an Order protecting Lehman Brothers International (Europe) (in administration) ("LBIE") and its Joint Administrators from potential claims in respect of any breach of trust which arises in circumstances where they distribute certain assets to clients and counterparties of LBIE after 19 March 2010 on the basis of the information then available to them (including information sent to them by clients prior to that date) and subsequent information comes to light after the making of the distribution which shows that the distribution was not made in accordance with the strict rights of one or more beneficiary. A copy of the Order may be viewed here.

This notice only summarises the terms of the Order. No reliance should be placed on this summary and any person who believes they may be affected by the Order should review the detailed terms of the Order, including the schedule thereto.

The assets to be distributed pursuant to the Order are "Trust Assets" (as defined in the Order). In broad terms, Trust Assets are securities and money derived from securities post-administration held by or to the order of LBIE as custodian in segregated client accounts. Trust Assets do not include money received pre-administration or securities or money held in LBIE's house accounts.  Trust Assets do not form part of LBIE's general estate.

Deadline for submitting Trust Asset claims

Pursuant to the terms of the Order, clients and counterparties of LBIE are hereby notified that they should, by 5.00pm in London on 19 March 2010 (the "Bar Date"), submit full details of any claims (other than claims by "Security Interest Claimants", as defined in the Order) they wish to assert to Trust Assets held by or on behalf of LBIE. 

If you are a LBIE client with a claim to Trust Assets, please consult your Updated Position and Balance Statement ("UPBS") via the Client Information Portal (using the log on information sent to all clients that the Joint Administrators believe have a claim to Trust Assets). If you believe that your UPBS accurately reflects your claim to Trust Assets (and you are content that you have provided all supporting documentation),  please accept the UPBS via the portal in advance of the Bar Date. If you believe that your UPBS does not accurately reflect your claim to Trust Assets, please amend each position and submit all supporting evidence for all revisions via the portal in advance of the Bar Date.

If you believe you have a claim to Trust Assets but do not have access to the client asset section of the Client Information Portal, please submit details of your claim, in advance of the Bar Date (regardless of whether you have done so previously), to generalqueries@lbia-eu.com , using the prescribed form which can be accessed here (attaching all supporting documentation).

Persons who fail to submit claims to Trust Assets by the Bar Date may lose their ability to share in any distributions of relevant assets.

The Order does not require you to take any action in relation to the following claims:

(a)        general, unsecured claims against the estate (i.e. unsecured monetary claims against LBIE where the money is not held on trust);

(b)        claims arising only from security interests in Trust Assets; and

(c)        claims to monies held by LBIE under the client money rules set out in the FSA's Client Assets sourcebook.

You are referred to the Order for full details of the claims to which the Bar Date applies.

If you have been sent this notice, it does not mean that you have a claim to Trust Assets or are otherwise entitled to receive a distribution of Trust Assets.

Any general queries in relation to this notice should be directed to generalqueries@lbia-eu.com. You should, however, consult your own legal advisers for advice in relation to the scope and effect of this notice and the Order.

Steven Anthony Pearson, Anthony Victor Lomas, Michael John Andrew Jervis, Dan Yoram Schwarzmann and Derek Anthony Howell (Joint Administrators of LBIE)

The Joint Administrators act as agents of LBIE without personal liability.

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If you believe you have a claim to Trust Assets but do not have access to the client asset section of the Client Information Portal, please submit details of your claim, in advance of the Bar Date (regardless of whether you have done so previously), to generalqueries@lbia-eu.com, using the prescribed form which can be accessed here.

Any queries relating to the above notice, or to the bar date generally, should be directed to generalqueries@lbia-eu.com. The Administrators will continue to communicate with you through this website regarding their progress in seeking to facilitate the return of trust assets.  Please continue to check the website for information on this and other matters relating to the administration of LBIE.