PwC announces first interim distribution to Omnibus Trust for Lehman Brothers International (Europe) of $7.8 billion

Published at 10:04 AM on 26 September 2013

The joint administrators of Lehman Brothers International (Europe) (in administration) (‘LBIE’), have announced that a first interim distribution amounting to $7.8 billion has been distributed to counterparties in the Omnibus Trust.

The amount distributed represents a 100% return on counterparties’ claims with the prospect of a further modest distribution next year once remaining tax and other reserves have been addressed.

The Omnibus Trust was created to deal with the highly complex issues surrounding the onward distribution of proceeds recovered from Lehman Brothers Inc. under the settlement agreement completed in June 2013 and developed through a consensual proposal receiving over 95% acceptance by affected counterparties.

LBIE’s house estate and unsecured creditors will also benefit by around $2 billion with the recovery of costs and indebtedness being settled by clients from their distributions.

The $7.8billion distribution is in addition to the £13.7 billion of Trust Assets returned and unsecured distributions of £5.9 billion made to date. The grand total eventually likely to be returned to creditors is expected to reach £40bn.

Russell Downs, joint administrator of LBIE and partner at PwC, said:

 "Today’s distribution marks the end of a very long campaign that started within weeks of the administration when our original claim on behalf of our clients was filed against Lehman Brothers Inc.  It has been a tough journey with many obstacles along the way, but ultimately one where our clients have benefited from a rewarding outcome.”

Owen Littman, general counsel at Cowen Group, Inc. and member of the LBIE creditors committee, said:

“This distribution is a landmark event for LBIE. Through the tremendous collaborative effort of the administrators, creditors' committee and trust creditors to achieve a novel solution, creditors are receiving significant value for their LBIE omnibus trust asset claims that were severely discounted following the collapse of Lehman Brothers."

ENDS

Notes to Editor

1. AV Lomas, SA Pearson, PD Copley, R Downs and JG Parr were appointed as Joint Administrators of Lehman Brothers International (Europe) to manage its affairs, business and property as agents without personal liability. AV Lomas, SA Pearson, PD Copley, R Downs and JG Parr are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

2. The Joint Administrators have been appointed to wind down the business in as orderly a manner as possible.

3. For more information on Lehman Brothers International (Europe) (in administration), see pwc.com/lehman

About PwC

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Media contact:

Katherine Howbrook
 
PwC | PR Manager - UK Regions and Financial Services
Office: 020 7212 2711 | Mobile: 07515 119 096
Email: [email protected]
PricewaterhouseCoopers LLP
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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

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