Fri, Aug 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

90% of Lehman's clients endorse plan to return $11bn in frozen assets by March next year

Wednesday, December 30, 2009
Opalesque Industry Updates - Lehman Brothers International's administrator PricewaterhouseCoopers (PwC) announced on Tuesday that almost all of the clients, whose assets have been frozen following the firm's collapse are supporting a plan to return the money early next year.

According to the Financial Times, the administrators said that a Claim Resolution Agreement (CRA) has been put into effect following the agreement of over 90% of the clients (by value) have supported the plan by the Dec 29 deadline.

The so-called CRA is a contract LBIE and its clients setting out the mechanisms for returning the assets. It divides clients' claims into four categories and facilitates the valuation and settlement of disputes over claims.

Joint Administrator Steven Pearson was quoted in Banking Business Review, saying “I am delighted that we have received overwhelming support for this arrangement to return assets to clients. The CRA now provides an agreed basis on which to systematically settle clients’ claims and reunite them with their assets. The implementation of the CRA illustrates the flexibility afforded to myself and my fellow LBIE Administrators under UK insolvency law and, in particular, the ability to develop practical solutions in consultation with the market."

According to press reports, hundreds of hedge funds, including prominent funds like Ramius Capital, could not access their money following Lehman's bankruptcy filing last September. The plan would return assets to funds and close out positions without the need to post further collateral.

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Kyria Capital Management bets on women hedge fund managers[more]

    Bailey McCann, Opalesque New York: As hedge fund assets top $3 trillion, and long/short strategies get more crowded than ever, with every manager hunting for even the tiniest bit of alpha, a new firm has emerged that claims its own edge – women. A recent Rothstein Kass study showed women-owned a

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  4. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  5. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by