Tue, Aug 22, 2017
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: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  3. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq

  4. David Tepper says we're 'nowhere near an overheated' stock market[more]

    From Marketwatch.com: Billionaire David Tepper thinks comparing this current stock-market environment with the overheated markets of 1999 is "ridiculous." The hedge-fund manager, who runs Appaloosa Management, told CNBC in a phone interview on Tuesday that the market's record run, notwithstanding la

  5. Opalesque Exclusive: Altegris and Artivest partner on distribution for alternative funds suite[more]

    Bailey McCann, Opalesque New York: California-based investment firm Altegris has partnered with New York-based alternative investments platform Artivest on distribution for $1 billion in alternative funds. The partnership also launches Artivest's capabilities to offer alternative solutions to acc