Alerts

LBIE Joint Administrators Summarize Potential Scheme of Arrangement

July 17, 2009

On July 14, 2009, the Joint Administrators of Lehman Brothers International (Europe) ("LBIE"), made an application to the High Court in London with respect to a Scheme of Arrangement (the "Scheme") (the UK administration’s analogue to a Chapter 11 plan of reorganization) designed to provide procedures to be used by LBIE for the purpose of returning so-called “trust property” held by LBIE to certain of its customers (“Creditors”). Among the primary purposes of the Scheme is the desire to avoid the need for a case-by-case resolution of the claims made by LBIE's Creditors. The Joint Administrators hope that the Scheme will "significantly expedite" the return of assets and avoid an unpredictable and tedious claims resolution process. They further hope to begin the return of assets in the first quarter of 2010. The Joint Administrators caution, however, that the Scheme is not intended to provide treatment of all claims against LBIE, but only Creditor claims for “trust property.”