Client Assets Update - Scheme of Arrangement - Court of Appeal Jurisdiction Hearing - 26 October 2009

This update relates to the Joint Administrators' appeal to the Court of Appeal concerning the jurisdiction of the court to sanction a scheme of arrangement with respect to certain client assets held by LBIE (the "Appeal "). Further background to the Appeal is set out in our update of 14 September 2009. We have also posted a series of Questions and Answers regarding the High Court's 21 August 2009 judgment on jurisdiction (which is the subject of the Appeal).

A public hearing of the Appeal took place before Lord Neuberger M.R. and Lord Justices Longmore and Patten. Counsel for LBIE and the Joint Administrators made representations in support of the Appeal. GLG Partners LP, as representatives of the creditors' working group, filed written submissions in support of the Appeal, but did not appear. Counsel for the London Investment Banking Association made representations in opposition to the Appeal. 

A further witness statement was filed by the Joint Administrators in advance of the hearing in order, among other things, to update the Court in relation to the progress made in designing an alternative to the proposed scheme of arrangement (i.e. the "contractual solution" referred to in our update of 5 October 2009). A copy of that witness statement can be accessed here.

Lord Neuberger M.R. and Lord Justices Longmore and Patten deferred giving judgment on the Appeal and did not give any indication of timing of when they would hand down their judgment.  We will post a further update on this website when the Court has provided its judgment.

The Joint Administrators will continue to communicate with you through this website regarding the progress of the proposed scheme of arrangement and contractual solution. Please continue to check the website for information on all matters relating to the administration of LBIE.

Please direct any questions you have about the Appeal to clientpositionresponses@lbia-eu.com.