Update – Lehman Brothers International (Europe) (in administration) (“LBIE”) – Application to challenge LBIE Administrators’ decision to admit proof of debt – 7 December 2017

On 19 September 2017, Wentworth Sons Sub-Debt Sarl (“Wentworth”) issued in the administration proceedings of LBIE (the “Administration”) an application (the “Application”) challenging the decision of the administrators of LBIE (the “Administrators”) to admit the proof of debt filed in the Administration by Olivant Investments Switzerland S.A. (“OISSA”) (the “OISSA Proof”).

The OISSA Proof was filed in the Administration on 24 July 2012, in a maximum amount of £835,835,748.10. On 2 November 2012, the Administrators agreed with OISSA a compromise of the OISSA Proof, entering into with OISSA a Claims Determination Deed stipulating an “Agreed Claim Amount”, to be admitted for dividends in the Administration, of £555,250,000.

The Application issued by Wentworth seeks to challenge the Administrators’ decision to admit the OISSA Proof. On 6 December 2017, following a Case Management Conference on 28 November 2017, Mr Justice Hildyard handed down a judgment in relation to the appropriate case management of the Application, indicating (as proposed by the Administrators) that a number of preliminary issues ought to be determined before the hearing of a full trial. 

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