Court Order in respect of Trust Property
This update is further to the one posted on 26 February 2009, itself updated on 16 March 2009 (click here to access), in relation to the Court application filed by the Joint Administrators (the "Administrators") of Lehman Brothers International (Europe) (in administration) ("LBIE") on 25 February 2009. The application provided an opportunity for the Administrators to update the Court as regards the progress that has been made in relation to Trust Property and to explain some of the difficulties which they continue to face as regards returning Trust Property to clients. In making the application, the Administrators also explained their intention to explore the possibility of proposing a scheme of arrangement in respect of Trust Property and also sought certain confirmatory relief as regards the costs of dealing with such property.
As advertised by the 26 February update referred to above, a public hearing of the Administrators' application took place at the Royal Courts of Justice on 16 March 2009. Various parties, including the FSA, attended the hearing without making representations. The London Investment Banking Association was represented at the hearing by leading Counsel, but did not oppose the Administrators' application.
Mr Justice Blackburne granted in full the relief sought by the Administrators. The effect of his Order is that:
A full copy of the sealed Order can be accessed by clicking here.
Pursuant to the above Order, the Administrators propose to continue exploring the potential terms of a scheme of arrangement, in consultation with the working group they have set up for that purpose and the creditors' committee. Should they determine that a fair scheme with a reasonable prospect of being acceptable to the affected creditors can be devised, the Administrators hope to be in a position to hold initial scheme meetings by the end of September 2009.
It is anticipated that further updates regarding any proposed scheme of arrangement will appear on this website in due course.
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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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