Client Money Update - High Court application regarding Post Administration Money - 18/09/09
This update concerns the two-day hearing in the High Court scheduled for the week commencing 5 October 2009, to determine the treatment of certain money received by LBIE after the time it entered administration ("Post Administration Money"). On 16 July 2009, the Joint Administrators made an application to the High Court to seek directions to determine the treatment of Post Administration Money (e.g., redemption proceeds, dividends or coupons) received by LBIE in respect of certain securities held by LBIE as custodian under certain versions of the International Prime Brokerage Agreement. Further details of the application can be found here.
As stated in the Client money and assets update of 12 August 2009, the application was issued without named respondents. The Joint Administrators, in the same update, invited clients and creditors affected by the issues raised in the application to notify them by 21 August 2009 if they wished to make representations in relation to the application.
The purpose of this update is to notify interested parties that, as matters currently stand, two respondents will put forward arguments relating to the issues which are the subject of the application at the hearing in October. The details of the respondents and their legal advisers are set out below:
Respondent |
Solicitors |
Contact |
|
Prime Brokerage |
RAB Market Cycles (Master) Fund Limited |
Simmons & Simmons |
Chris Braithwaite Gerard Heyes |
General EstateCreditor |
Hong Leong Bank Berhad |
Baker & McKenzie LLP |
Arun Srivastava Georgia Chrysikopoulou |
It is expected that the prime brokerage respondent will make submissions in support of the relevant cash proceeds being payable to the client in full. The general estate will make submissions to the contrary.
If any other Prime Brokerage Client or General Estate Creditor wishes to raise any points for consideration during the application they are requested to make contact with the relevant named contact at the appointed law firms by close of business on Friday 25 September 2009.
The Joint Administrators will continue to communicate with you through this website regarding the progress of the hearing. Please continue to check the website for information on this and other matters relating to the administration of LBIE.
Please direct any questions you may have with respect to the above to clientpositionresponses@lbia-eu.com.
