Lehman Brothers International (Europe) (in administration) announce an Application to Court for directions in respect of a settlement of the Waterfall III proceedings - 21 July 2017

On 20 July 2017, the Joint Administrators of Lehman Brothers International (Europe) (in administration) (“LBIE”) issued an application to Court for directions, pursuant to paragraph 63 of Schedule B1 of the Insolvency Act 1986, in respect of a settlement of the Waterfall III proceedings (the "LBIE Application"). The LBIE Administrators consider the settlement to be a matter of sufficient significance such as to make it appropriate for them to seek an Order from the Court that they be at liberty to enter into and perform (on their own behalf and on behalf of LBIE) the relevant transaction documents.  

On 20 July 2017, the respective Administrators of LBHI2 and LBL also filed applications with the High Court, in which they also seek directions from the Court in relation to the proposed settlement.  It is the parties’ intention that the Court hears the LBIE Application and the LBHI2 and LBL applications together at the same hearing, in light of the inter-relationship between those applications. The High Court hearing to deal with these applications has been listed for Monday 24 July 2017, at 7 Rolls Building, Fetter Lane, London EC4A 1NL, in Court 5, commencing not before 10:30am.

In addition to LBL and LBHI2, Lehman Brothers Holdings plc (in administration) (“LBH”) and Lehman Brothers Europe Limited (“LBEL”), will be parties to the proposed settlement.  The LBIE Administrators understand that the respective Administrators of LBH and LBEL also intend to attend the hearing of the 24 July 2017 hearing by counsel.

The LBIE Application and the witness statement in support of the Application are available by following the links on this page. The witness statement provides further information as to the factual background to, and the issues in, the LBIE Application.

The LBHI2 Administrators’ Application and the accompanying fifth witness statement of Gillian Eleanor Bruce can be found here.

Should you have any queries regarding this update, please contact LBIE’s Communications and Counterparty Management team at generalqueries@lbia-eu.com.