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Lehman Brothers International Europe objects to customer claim ruling
By Caroline Salls
Pittsburgh, Aug. 4 - Lehman Brothers International Europe (LBIE) has filed a formal objection in connection with Lehman Brothers Inc.'s Securities Investor Protection Act (SIPA) trustee's ruling that LBIE may not have a claim in a customer property fund, according to a news release.
Lehman Brothers International Europe said it tried to engage Lehman Brothers Inc. in a cooperative effort to resolve its claim since the trustee's initial denial of the house customer claim in September 2010.
According to the release, the trustee plans to argue that LBIE may not have a claim in the fund of customer property because it is an affiliate within the Lehman Group.
"The issue of whether or not LBIE, as an affiliate, may have a claim in the fund of customer property will be a defining issue for LBI given the size of the house customer claim," the release said.
LBIE said Lehman has submitted a revised claim, which is it considering.
A trial date will be set by the court, but is unlikely to be held before 2013.
As previously reported, LBIE received an initial determination of its claim from Lehman's SIPA trustee on Sept. 16, 2010 under which the claim for securities had been allowed for a defined list of securities and quantities valued at $6.2 billion.
The trustee deferred his ruling on cash balances owed to LBIE clients for a minimum of 30 days and, with respect to commodities and futures, LBIE's claim was denied.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.
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