Lehman Europe to repay investors $11 billion

Written by Press Trust of India | London | Updated: Dec 31 2009, 09:02am hrs
The administrators of the European operations of the failed Lehman Brothers will return assets worth over $11 billion to the investors. More than 90% of the affected investors at Lehman Brothers International Europe are in support of the plan to return the assets.

PricewaterhouseCooperswhose partners are the administratorson Wednesday said it got the support of over 90% clients for the claim resolution agreement (CRA).

The CRA, a multilateral contract between Lehman Brothers Europe and its clients, governs the basis on which assets can be returned.

Under these arrangements, the administrators expect to return over $11 billion of the client assets, PwC said in a statement. Lehman Brothers Europe had some $32 billion of client assets as on September 15, 2008the day, when its American parent firm Lehman Brothers filed for bankruptcy in the US. Since that date $13.3 billion has been returned.

According to the statement, the agreement allows the failed financial titan to distribute the remaining trust property during 2010.

The collapse of the famed Lehman Brothers had worsened the financial turmoil in the US which pushed the global economy into a tizzy.

The CRA now provides an agreed basis on which it has to systematically settle clients claims and reunite them with their assets, PwCs Joint Administrator and Partner Steven Pearson said. The agreement was issued by the Lehman Europe to creditors in November 2009. Meetings with affected clients were held in London and New York this month to explain the terms of the agreement and to garner their support.

Pearson, Tony Lomas, Dan Schwarzmann, Michael Jervis and Derek Howell, all partners at PwC, were appointed as joint administrators to Lehman Europe.