Lehman Brothers Holdings Inc. (fka LEHMQ)

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Lehman Brothers European Administrator Recoups $48.6B AssetsFont size: A | A | A
10:28 AM ET 4/15/10 | Dow Jones
By Ainsley Thomson

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The European administrator of Lehman Brothers Thursday said it has gained control of $48.6 billion of securities and cash and returned $14.3 billion of assets to clients in the 18 months since the U.S. investment bank collapsed.

In its six-monthly progress report to creditors, PwC Thursday disclosed that the administrator's costs over the last six months were GBP57.6 million.

Steven Pearson, joint administrator and partner at PwC, said the past six months had been "exceptionally productive" and had included the implementation of a "high innovative" plan to speed up the return of around $11 billion in frozen client assets.

The plan, called the claim resolution agreement, was approved by Lehman Brothers International Europe's 1,000 former clients, most of whom were hedge funds, in December 2009.

Pearson said the first returns to clients under the agreement have now been made. In addition, $14.3 billion has been returned to clients, including $1 billion in the last six months, via bilateral agreements.

In the progress report, PwC also said litigation planning was underway against a number of high-value counterparty debtor groups and that $217.3 billion of claims had been filed against Lehman affiliates.

The collapse of Lehman Brothers in September 2008 caused financial chaos around the world, prompting nearly 80 Lehman affiliates worldwide to fold. Each affiliate is being wound down under the legal regime of the country in which it is based. PwC was appointed as administrator of Lehman Brothers International Europe on Sept. 15, 2008.

-By Ainsley Thomson, Dow Jones Newswires; 44 20 7842 9318; [e-mail]

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04-15-10 1028ET

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