Client money & assets update - Scheme of Arrangement - Jurisdiction Hearing - 29 and 30 July 2009

This update concerns the application to the High Court concerning the jurisdiction of the court to sanction a scheme of arrangement with respect to certain client assets held by LBIE (the "Application"). Further background to the Application is set out in our update of 15 July 2009, which can be accessed here, and a list of Frequently Asked Questions regarding the Application can be accessed here.

As mentioned in our update of 15 July 2009, a public hearing of the Application took place before Mr Justice Blackburne at the Royal Courts of Justice on 29 and 30 July 2009. Counsel for LBIE and the Joint Administrators and Counsel for GLG Partners LP, as a representative of the scheme working group of creditors, made representations in support of the Application. Counsel for the London Investment Banking Association ("LIBA") made representations in opposition to the Application.

Mr Justice Blackburne deferred giving judgment on the Application.  We will post a further update on this website when the Court has provided its judgment, which we expect will be in late August.

The Joint Administrators will continue to communicate with you through this website regarding the progress of the proposed Scheme and further postings are expected to be made over the course of the summer. Please continue to check the website for information on the scheme of arrangement and other matters relating to the administration of LBIE.

Please direct any questions you have about the Application to generalqueries@lbia-eu.com.