Update - Lehman Brothers International (Europe) (in administration) announces an application concerning the Statutory Interest Lacuna – 1 December 2017

In the update on 10 November 2017, the Joint Administrators of Lehman Brothers International (Europe) (in administration) (“LBIE”) made clear that they would not accede to Wentworth’s paragraph 56(1) request to seek a creditors’ decision to bring about the termination of the administration of LBIE and the commencement of a liquidation (the “paragraph 56(1) request”), concluding that the elimination of entitlements to circa £5bn of statutory interest held by ordinary creditors was not in the interests of creditors as a whole.

In light of Wentworth’s refusal to withdraw the paragraph 56(1) request, on 28 November 2017 the Joint Administrators accordingly issued an application to the Court for directions, pursuant to paragraph 63 of Schedule B1 to the Insolvency Act 1986 (the “Waterfall IV Application”). Wentworth was named as respondent to the Waterfall IV Application.  

The application notice and accompanying witness statement in support of the Waterfall IV Application are available by following the links on this page.  The witness statement provides further information as to the factual background to, and the issues in, the Waterfall IV Application. 

• Application Notice
• Fifteenth Witness Statement of Russell Downs and exhibit

Should you have any queries regarding this update, please contact LBIE’s Communications and Counterparty Management team at generalqueries@lbia-eu.com.