Creditor update - Notice of Proposed Distribution - 4 December 2009

This update concerns the notice of proposed distribution, which the Joint Administrators have recently given to LBIE's creditors, converting LBIE's administration into a liquidating administration.

The Joint Administrators' efforts during the first phase of LBIE's administration have been focused both on dealing with the assets held on trust by LBIE and, in parallel, on the progression of the realisation of assets for the benefit of LBIE's general unsecured creditors.

The Joint Administrators have commenced the process of organising the House Assets in preparation for making, in due course, an interim dividend to unsecured creditors. This necessitated an application by the Joint Administrators to the High Court that was made last week for the purpose of converting the administration of LBIE into a liquidating administration by obtaining permission pursuant to Paragraph 65 of Schedule B1 of the Insolvency Act 1986 to make a payment by way of distribution to unsecured creditors.  A copy of the Court's Order can be found here.

All creditors whose addresses are known to the Joint Administrators have been sent a notice pursuant to Rule 2.95 of the Insolvency Rules 1986, informing them that the Joint Administrators propose to make a distribution (by way of paying an interim dividend) to unsecured creditors. A copy of that notice can be accessed here.

The giving of the notice referred to above brings into effect the provisions of Chapter 10 of the Insolvency Rules, including those relating to set-off and those pursuant to which unsecured creditors may prove for their debts. The notice specifies 31 December 2010 as the date up to which proofs may be lodged.

Information for the methods by which claims against LBIE can be submitted are detailed here.

The Joint Administrators will continue to communicate with creditors through this website. Please continue to check this website for information on this and other matters relating to the administration of LBIE.

Please direct any queries in relation to the above to enquiries.lehmanbrothers@uk.pwc.com