Originally published 26 October 2009

Keywords: Lehman Brothers, Europe, LBIE, joint administration, creditor claims

Summary

The joint administrators of Lehman Brothers International (Europe) ("LBIE") have released their second statutory six month progress report for the period 15 March 2008 to 14 September 2009 (the "Report").

A full copy of the Report is attached, which includes detail about the positions realised and expenses to date. Key points of interest are as follows:

  1. The Administrators have extended their appointment, by order of the Court, until 30 November 2011. They may seek to further extend the appointment if they think that this is in the creditors' best interests;
  2. The Administrators are not yet in a position to estimate the likely level of recoveries for unsecured creditors and have not indicated whether or when an interim dividend or dividend might be paid;
  3. The Administrators are not yet able to determine the likely method by which LBIE will exit from administration;
  4. The Administrators applied to the High Court in July 2009 to confirm that the High Court had jurisdiction to implement a scheme of arrangement for the purpose of returning client assets to clients. The Court decided that it did not have jurisdiction to sanction such a scheme. The Administrators are appealing this decision (to be heard on 26 October 2009) and are also developing a contractual mechanism to return client assets to clients as an alternative to the scheme of arrangement; and
  5. No bar date has been established for creditor claims. In the meantime, creditors may continue to submit their claims to the Administrators electronically via the LBIE Client Information and Claims website.

Please click to get the full report. The Report has been mailed to all known creditors and counterparties of LBIE with open positions at 15 September 2008.

The Mayer Brown Lehman Team continues to monitor the developments of the LBIE Administration

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