Creditors Of Lehman Brothers’ European Division Will Just Have to Wait A Bit Longer To Recovery Their Money
By: Ainsley Brown
The English High Court has scuttled a plan for quick payouts to creditors by the administrator’s of Lehman Brothers’ European arm.
PricewaterhouseCoopers (PwC), the administrator is now carefully studying the judgment and weighing it options i.e. should it appeal or not. In either case Lehman Brothers’ creditors face delays in recovering their assets. The ruling affects some $9 billion of assets – over $13 billion have already been returned to creditors.
The plan proposed by PwC was to split more than 1,000 creditors into three groups by asset class; each claim would in turn be dealt with by class. Mr. Justice Blackburne, sitting in the High Court, ruled that the English courts did not have the authority to split the creditors into groups. PwC will now have to review each claim individually or find a way to modify the plan so it conforms with the ruling.
