UPDATE 1-Lehman Europe creditors in line for 2012 payout
Close to 12.6 billion pounds ($19.8 billion) has been raised
from assets owned by the former Lehman Brothers European
operations, or Lehman Brothers International Europe (LBIE),
accountants PricewaterhouseCoopers (PwC) said on Thursday .”We remain hopeful of making a first, interim distribution
to creditors at some stage during 2012,” said Tony Lomas, a
partner at PwC, administrators of the European unit since Lehman
collapsed in 2008 in the biggest bankruptcy in U.S. history.In the last six months alone, PwC has raised some 1.8
billion pounds in cash from the unit’s assets.PwC said the potential range of cash recovered, after costs,
was between 7.5 and 12.5 billion pounds.Claims from unsecured creditors alone, however, could stand
at between 16.2 billion and 52.5 billion pounds.With many claims still to be processed it is difficult to
estimate the total claims that will be paid out, as not all
claims will necessarily be accepted.Many claimants have not yet provided the proof of debt they
must submit to be considered eligible creditors.Costs of the administration include what PwC itself is paid.
Since Lehman’s collapse, it has clocked up a 403 million pound
bill.PwC has also been working to settle claims not just by
LBIE’s own creditors but for clients that had assets parked with
the bank. It has released 13 billion pounds of these to date.Citigroup also struck a deal this year with the failed
European arm of Lehman to release over $2.5 billion worth of
assets held in its custody business to add to what can
eventually be returned to creditors and clients.LBIE still has reams of court cases pending, including ones
that will reach Britain’s Supreme Court, which will continue to
be a drag on how quickly it can pay out creditors and on how
much money they get.
