Update - Other Surplus Litigation - Settlement in the Barclays Proceedings - 25 April 2018

The Joint Administrators are pleased to announce that there has been a settlement in the Barclays proceedings which means that the hearing that was listed for a trial in a window of 16-20 April 2018 will not be required (nor will it be necessary to determine factual disputes which had been stayed within an outcome of this trial).  There were a number of complex issues to be addressed in the proceedings, in relation to both the client money and unsecured claims of Barclays. 

The full settlement terms are confidential, but the Joint Administrators can advise that a single payment has been made to Barclays in the amount of £250 million in full and final settlement of all remaining open issues.  Wentworth Sons Sub-Debt Sarl, a respondent to the proceedings, is a party to and is supportive of the settlement. 

The settlement reached at this stage will bring the following benefits to LBIE’s other stakeholders.

• A reduction in the amount reserved for Barclays, meaning that funds of £186 million which had been agreed to be reserved for Barclays within the proposed scheme of arrangement will be immediately available within the proposed scheme for scheme creditors. 
• The strong prospect that (once the proposed scheme becomes effective) the remaining issues within the client money estate can be expeditiously concluded enabling significant further funds to be available for creditors earlier than would otherwise have been the case.

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