Lehman Bros 6.5% Pref''d Series "F" (fka LEHFQ)

[RICK C]

Taken from the J board posted by Coach-
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Posted by: coach tequila Date: Monday, December 07, 2009 1:32:49 PM
In reply to: None Post # of 5171

I am pretty sure this Judgement form the High Court in the UK is good news. The High Court has recognized the UK proceeding as a "foreign main proceeding".

LBHI Docket #6055...

IT IS ORDERED that Chapter 11 of Title 11 of the United States Code in the United States proceeding Bankruptcy Court for the Southern District of New York as commenced on 3 October 2008 (Case Number 08-13888) be recognised as a foreign main proceeding in accordance with the UNCITRAL Model Law on cross-border insolvency as set out in Schedule 1 to the Cross-Border Insolvency Regulations
2006

AND it is ordered that, for the avoidance of doubt, the stay and suspension under Article 20 of further order made by the court
the Model Law shall not apply as regards Cases HCO9C 11612 and HCO9C01931 and any appeals in such actions, and shall not affect or inhibit in any way the rights of the applicant to transfer,
encumber or otherwise dispose of or deal with any of its own assets as "debtor in possession" subject to the provisions of Chapter 11 of the US Bankruptcy Code.

AND it is ordered that the costs of the said application be paid as an expense of the Applicant's costs voluntary case under Chapter 11 of the US Bankruptcy Code.

I believe this gives the lead to Judge Peck and allows US Chap 11 laws to be recognized as the final authority. This is big for two cases that are derivatives setting precedents. UK law would have decided differently.

Any lawyers out there that have a better understanding of this?

Coach T