
This update provides further information to counterparties who believe that they have a claim against LBIE which includes amounts that may qualify for Client Money protection under the terms of the FSA’s Client Money Rules. This update provides information on the recent Supreme Court hearing and other developments since the adjournment of the Tracing Application on 17 May 2011, please see Client Money Update 17/05/11 for further information.
The Supreme Court substantive hearing commenced on 31 October 2011 and concluded on 3 November 2011. Oral submissions were made by GLG Investments plc Sub Fund: European Equity Fund (Appellant), CRC Credit Fund Limited (Respondent), Lehman Brothers Finance AG and Lehman Brothers Inc (Jointly Respondents) and the Joint Administrators. The Supreme Court Justices indicated that the judgment is likely to take some time. Our understanding is that it is quite common for judgments to take up to six months or more before being handed down.
The Joint Administrators remain hopeful that the Supreme Court judgment will provide sufficient clarity to materially progress the resolution of Client Money in 2012 and will update clients on progress as appropriate.
Since the adjournment of the Tracing Application the Joint Administrators have focussed on progressing work that will assist with the resolution of Client Money issues. Please refer to Section 7 of the Joint Administrators’ Sixth Progress Report (for the period 15 March 2011 to 14 September 2011) for detailed information on the Client Money team’s progress. In addition to the Supreme Court hearing recent developments have included the following:
Further updates regarding the Joint Administrators’ progress will follow in due course. As always, the Joint Administrators will continue to communicate with you through this website on all matters relating to LBIE’s Administration. Should you have any questions regarding this update, please contact the Communications and Counterparty Management team at clientpositionresponses@lbia-eu.com.
Restructuring and Insolvency Partner, UK Head of Insolvency, PwC United Kingdom
Tel: +44 (0)7974 332659