Other Notices

The Administrators’ appointment was due to end on 30 November 2022. As there are remaining matters to be dealt with in the administration, the Administrators filed an application to extend the administration and an extension was granted until 30 November 2025. If you would like to see the detailed reasons in support of the application or attend the hearing, please contact uk_lbl_enquiries@pwc.com

Clawback proceedings

Creditors will be aware of the "Clawback Proceedings", from our six-monthly Progress Reports.

The parties to the Clawback Proceedings agreed on a stipulation of facts and completed discovery and deposition processes, in preparation for a Summary Judgment motion that was scheduled to be heard on 13 January 2021.

During the period leading to the Summary Judgment motion hearing, negotiations continued between LBHI, LBL, and the other Lehman UK affiliate entities that were party to the Clawback Proceedings, with a view to settlement of those proceedings. A settlement was agreed between the parties and was approved by the New York Bankruptcy Court on 21 January 2021. Pursuant to the terms of the Settlement Agreement, the Clawback Proceedings will be dismissed when all of the payment obligations have been discharged. As part of the terms of the settlement, LBL agreed to make a payment of $112 million to LBHI. Of that sum, $96m has been paid and $16m will be paid in week commencing 15 February 2021.

Distributions to creditors

Following settlement of the Clawback Proceedings, LBL is now in a position to pay a further distribution to creditors.

Creditors will be aware that to date, the principal amount of all admitted unsubordinated claims has been paid in full, together with 31.4% of creditors respective entitlement to Statutory Interest.

Certain affiliate creditors of LBL have agreed to subordinate their remaining Statutory Interest entitlements to the entitlements of other creditors who have submitted proofs of debt.  The distributions to be paid are therefore:

(a)  To ordinary unsecured creditors whose claims have been admitted to rank for dividend, 68.6% of their respective entitlements to Statutory Interest to bring the cumulative amount paid to 100% of their respective entitlements; and

(b)  To creditors who have agreed to subordinate their remaining entitlements to Statutory Interest, 33.6% of their respective entitlements to bring the cumulative amount paid to 65% of their respective entitlements.

Creditors have been requested to confirm bank and other details.  Payments are anticipated to be made in March, subject to receipt of information requested.

If you have not received our communication regarding confirmation of bank account details please contact us at uk_lbl_enquiries@pwc.com

Creditors will be aware from recent Progress Reports, including our most recent Progress Report dated 9 April 2020, of LBL's interest in an application for directions made to the Court by the Administrators of LB Holdings Intermediate 2 Ltd (in Administration) ("LBHI2").

LBL's interest is as the largest ordinary unsecured creditor of LBH Plc.  The largest asset of LBH Plc remaining to be realised is a subordinated claim in the estate of LBHI2.  The application for directions by the Administrators of LBHI2 concerned (amongst other things) whether LBH Plc's subordinated claim ranked in priority to another subordinated claim, equally with (i.e., pari passu) that other claim, or junior to it. 

The Court has now handed down judgment and has held (amongst other things) that LBH Plc's claim in LBHI2 ranks in priority.

It remains to be seen if this judgment will be appealed.  However, if the judgment is not appealed, or an appeal in relation to the ranking of the subordinated claims in LBHI2 is ultimately unsuccessful, LBH Plc in due course is likely to be able to pay significant additional amounts to LBL, and in turn LBL is likely to be able to pay material additional amounts of "statutory interest" to its creditors, as described in the Progress Report.

A fuller summary of the judgment and of its commercial consequences are on the website for LBH Plc together with a copy of the full judgment:  

https://www.pwc.co.uk/services/business-restructuring/administrations/non-lbie-companies/lbh-plc-in-administration.html  

A copy of our most recent progress report may be found below.

We will further update creditors in due course and in any event in the next Progress Report. 

The Joint Administrators gave notice on 6 August 2018 of their intention to declare an initial payment in respect of interest for periods after the date of insolvency ('statutory interest').   

On 13 September 2018 an initial distribution of 31.4% of creditors' entitlements to statutory interest was declared.

The Joint Administrators made an application to the High Court for leave pursuant to Paragraph 65 of Schedule B1 of the Insolvency Act 1986 to make payments by way of distributions to unsecured creditors. On 20 June 2014 an order was granted giving the Joint Administrators leave to pay distributions to (non preferential) unsecured creditors of LBL. A copy of the order can be found here.

• Letter to Creditors - Extension to the Administration - Dated 20 November 2022

• Letter to Creditors - Proposed extension to the Administration - Dated 24 October 2022

• Further update on proposed settlement of Waterfall III proceedings - 14 July 2017

• Update on potential settlement of Waterfall III - 10 July 2017

• Waterfall I - Judgment of the Supreme Court - 17 May 2017

• Update on potential settlement of Waterfall III - 29 March 2017

• Update on application to the Court for the appointment of Zelf Hussain as a Joint Administrator and for permission that Dan Yoram Schwarzmann, Anthony Victor Lomas, Steven Anthony Pearson and Julian Guy Parr may resign

• Application to the Court made on 26 February 2016 for the appointment of Zelf Hussain as a Joint Administrator and for permission that Dan Yoram Schwarzmann, Anthony Victor Lomas, Steven Anthony Pearson and Julian Guy Parr may resign

There are a number of creditors with claims admitted for dividend purposes, which we are unable to make a distribution to as their last known address is no longer correct and therefore despite best efforts we have been unable to contact or pay their full entitlement. 

If you think you may be one of these creditors, please complete the below form and return it to us by email to uk_lbl_enquiries@pwc.com, or by post to Lehman Brothers Limited in administration, ℅ PwC, 8th Floor Central Square, 29 Wellington Street, Leeds, West Yorkshire, LS1 4DL.

Untraced creditors form