Harbinger Loses $130M In Shares Due To Lehman Bankruptcy

Oct 23 2009 | 12:14pm ET

While some clients of Lehman Brothers’ European prime brokerage may soon get some of their frozen assets back, that’s of little comfort to activist hedge fund Harbinger Capital Partners.

The New York-based firm said this week that more than a quarter of its stake in sugarmaker Tate & Lyle—worth more than US$130 million—had been written down last year. Worse still, more stocks owned by Harbinger and held by the bankrupt bank may also be gone forever.

Harbinger still owns 9% of Tate & Lyle.

“The special fund believes at this time rehypothecated shares will not be recoverable,” Harbinger said in a statement, referring to shares that were deposited at Lehman Brothers International Europe and then sold on. “Certain non-rehypothecated shares were also held at LBIE and the timings and likelihood of the return of such shares is uncertain at this time.”

The hedge fund did say it is "likely to receive value for shares posted to LBIE
prior to the administration proceedings," and that "the situation regarding Harbinger’s investment in Tate & Lyle is not new."

Some US$11 billion in prime brokerage assets have been frozen as part of Lehman’s bankruptcy proceedings in London. This week, a judge ruled that about US$3.3 billion of that could be returned by the court-appointed administrator for LBIE, PricewaterhouseCoopers.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps 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.