Update: Security Interest court hearing in Hong Kong SAR on 21-22 January 2014 – 03 January 2013

Since the collapse of the Lehman group in 2008 the Joint Administrators of LBIE have sought the recovery of securities and cash held in Asia for LBIE and certain of its clients by Lehman Brothers Securities Asia Limited (“LBSAL”). The return of these assets has been delayed by a number of issues, most notably the need to resolve the validity and applicability of certain security interest provisions potentially in favour of Lehman affiliates which may apply to some or all of those assets.

The Joint and Several Liquidators of LBSAL have applied to the Hong Kong SAR Court for the determination of certain questions concerning the validity of any such security interests with a view to facilitating the return of the assets. That hearing is due to take place in Hong Kong SAR on 21 and 22 January 2014. Any Lehman affiliate which wishes to argue that those security interests may be valid should consider whether or not to appear at the hearing in order to explain its position. A notice of that hearing, published by the LBSAL Liquidators, is available here.

A further notice explaining that third parties deciding not to appear at the hearing may nonetheless be bound by any rulings arising from it is available here.