Lehman Prime Brokerage Clients OK Distribution Plan

Dec 30 2009 | 12:33pm ET

Lehman Brothers prime brokerage clients have approved a plan that will release some US$11 billion in assets frozen as part of the investment bank’s bankruptcy proceedings in London.

Administrator PricewaterhouseCoopers said its claim resolution agreement was approved by more than 90% of the affected clients of Lehman Brothers International Europe, including some of the largest and most prominent hedge funds in the world. The firm plans to begin returning those assets next year.

“The claim resolution agreement now provides an agreed basis on which to systematically settle clients’ claims and reunite them with their assets,” administrator Steven Pearson said.

That will be quite a relief to clients—among them Ramius Capital and GLG Partners—who haven’t had access to their money since Sept. 15, when LBIE went into administration. PwC has successfully returned some US$13.3 billion to clients since then, but hit a snag when British courts repeatedly rejected its earlier settlement plans for the US$11 billion in prime brokerage assets.

The 1,000 clients covered by the agreement, primarily hedge funds, have until March 19 to file their claims.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.