Client money & assets update - Scheme of Arrangement - Presentation to Members of MFA and AIMA - 5 and 7 August 2009

This update concerns the presentation given by the Joint Administrators to members of the MFA in New York on 5 August 2009 and also to AIMA in London on 7 August 2009. The objective of the presentations was to provide members of the industry bodies who may have an interest in the trust assets held by LBIE with an overview of the proposed scheme of arrangement (the "Scheme").

For background information on the Scheme, please see the client money and assets update of 15 July 2009 .

As previously explained to creditors, the current process for bilateral returns of client assets is lengthy and onerous as well as lacking in finality regarding dealings between LBIE and its customers. These issues have previously been explained in the second witness statement made by Steven Pearson, on 25 February 2009 in which the Joint Administrators explained their intention to propose a scheme of arrangement in respect of Trust Property. Click here to review such statement. The Scheme is intended to deal with these issues as described in the second witness statement made by David Ereira on 14 July 2009 in respect of the Scheme. Click here to review such statement.

The presentation introduced and described some of the key provisions of the Scheme. The presentation is NOT:

• a comprehensive description of the Scheme
• a substitute for reading the Scheme document. Please note that the full Scheme document and Explanatory Statement are not yet available but scheme creditors will be notified in due course once they are finalised for publication

The presentation also provided an opportunity to update attendees on the general progress made by the Joint Administrators and to put the Scheme into the context of the wider LBIE Administration. 

Representatives of the SIPA Trustee to Lehman Brothers Inc. were also in attendance at both meetings and made a short presentation in respect of the status of LBIE's clients claims in the US process. 

There were a large number of questions that were asked at the meetings.  These are being summarised, along with answers, and will be posted on this website shortly.

Please click here to access a copy of the Joint Administrators' presentation to MFA and AIMA.

The Joint Administrators will continue to communicate with creditors through the PwC Lehman Brothers International (Europe) (in administration) website. Please continue to check the website for information on the Scheme and other matters relating to the administration of LBIE.

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