This update is to inform clients with potential claims to client money held by Lehman Brothers International (Europe) (in administration) (“LBIE”) prior to the time of administration (“Pre-Administration Client Money”) that the Client Money Proposal has now been successfully concluded, and all clients who registered and were accepted by the Joint Administrators within the announced deadlines have been paid in full. For more information on the Client Money Proposal, please view the Client Money Updates on the PwC LBIE website here.
Under the Client Money Proposal, those clients who registered and were accepted by the Joint Administrators entered into a contract under which they were paid an amount in exchange for the assignment of their rights to Pre-Administration Client Money. As a result, the recent Court of Appeal judgment regarding Pre-Administration Client Money has no impact on clients who took advantage of the Client Money Proposal. For further information on the Client Money Application and Court of Appeal Judgment please view here.
The Client Money Proposal was well received by those clients who were eligible to participate, particularly those with smaller entitlements. As a consequence several hundred Pre-Administration Client Money claimants have now been paid out in full, including many who have no further claims on the LBIE estate. As well as benefitting many clients, the lower costs resulting from a reduced population of clients with a Pre-Administration Client Money claim is of value to LBIE’s general estate.
As always the Joint Administrators will continue to communicate with you through this website on all matters relating to LBIE’s administration. Should you have any questions regarding this update, please contact the Counterparty Communications and Management team at clientpositionresponses@lbia-eu.com.
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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.
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