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Replies to post #108979 on Lehman Brothers Financial SA (LEHNQ)
12/01/23 5:54 PM
👉️Deutsche Bank and New York-based Whitefort Capital Management LP are the two members of a creditor committee of the general partner of the ECAPS notes, according to people familiar with the matter. Other investors in the notes have included Barclays Plc, Farallon Capital Management and CarVal Investors.👈️
In a trial last year, the handful of distressed debt investors scored a win as the ECAPS claim was found to rank ahead of Lehman Brothers Holdings Inc. (LBHI), but there was an outstanding question around statutory interest on that claim. Statutory interest is a charge a creditor can levy if they have been paid late, and in the UK it is accrued at 8% each year.
Hildyard decided that statutory interest on ECAPS notes ranked ahead of the repayment of principal on the competing debt, leaving LBHI further down the pecking order when it came to receiving money. That decision has boosted the payout for ECAPS holders, potentially adding £221 million, according to an agreement established between the two parties prior to Wednesday’s judgment and Bloomberg calculations.
An initial payment will be sent to ECAPS holders on Dec. 8, according to a notice issued Wednesday.
MR JUSTICE HILDYARD: Well, thank you for making it
2 available . I don’t either approve or disprove it ,
3 I simply note this is the basis on which you have
4 proceeded. My questions really relate to finality .
5 MR BELTRAMI: Yes.
6 MR JUSTICE HILDYARD: And in that context, I noticed two
7 things which you may assist me on. 👉️The first is that DB
8 is described as an informal representative of other
9 persons interested in the same way,👈️ and I take it that
10 there is no issue in that regard, and I can take it that
11 the issue which will have been argued by DB one way or
12 the other will be, in effect , concluded.
AI
