Joint Administrators Pricewaterhouse Coopers Return £12 Billion to Lehman Creditors
Pricewaterhouse Coopers, who are the joint administrators of Lehman Brothers International, Europe (LBIE), has returned almost £12 billion to the creditors of the collapsed bank.
The move has been revealed when a 2-year progress report by the firm came out today.
Lehman Brothers International collapsed in the year 2008. Industry analysts are of the opinion that it was partly responsible for the slow down which the whole economic world is witnessing.
The joint administrators however said that a judgement by the Court of Appeals has set them back. Pricewaterhouse Coopers said that that the judgement was handed down to them in the month of August this year and has suppressed the firm’s further distribution of client money.
Pricewaterhouse Coopers said in a statement that the judgement that has been given will have a material impact on the unsecured creditors of LBIE and client money claimants, which is going to result in “significant delay to distributions and substantial additional costs”.
The joint administrators further stated that they are currently unable to provide advice to the bank’s creditors on the amount or timing of an interim dividend on account of the pre-administration client money judgment.
The administrators will now be embarking on a complicated tracing exercise for the identification of additional client money claimants as well as assets and cash which might have been a trust claim.
Tony Lomas, who is Pricewaterhouse Coopers partner and joint administrator said: ‘While there are still numerous major challenges to address, our actions to date have generated significant realizations for creditors which will be paid to them in due course”.
Since March this year, Pricewaterhouse Coopers has been able to return almost £2 billion in trust assets after it launched its Claims Resolution Agreement.