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Lehman Europe administrators seek direction on surplus entitlements
By Caroline Salls
Pittsburgh, June 13 – Lehman Brothers International (Europe)’s (LBIE) joint administrators applied for court directions on a number of issues related to entitlements to the surplus in the LBIE estate, according to a news release.
Specifically, the application seeks the guidance of the High Court of Justice, Chancery Division, Companies Court in relation to how statutory interest on admitted claims is to be calculated; the date from which statutory interest is to run on contingent and future debts; how interest claims under ISDA master agreements are to be quantified; how currency conversion claims are to be quantified; and the impact of claims determination deed and claim resolution agreement releases on claims to statutory interest and/or currency conversion claims.
The administrators identified LBIE creditors Burlington Loan Management Ltd., CVI GVF (Lux) Master Sarl, Hutchinson Investors, LLC, Wentworth Sons Sub-Debt Sarl and York Global Finance BDH, LLC as respondents to the application.
According to a court filing, a potential compromise reached earlier this year in connection with creditors’ entitlements to surplus did not achieve consensus among creditors.
The administrators also said talks concerning an agreement that would resolve limited issues to allow interim distributions of statutory interest were also unsuccessful.
While funds are available to distributed, the administrators will not be in a position to distribute the surplus funds if the issues in question are not resolved, the filing said.
An initial directions hearing is scheduled for June 25.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company emerged from bankruptcy on March 6, 2012.
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