Lehman Brothers Holdings Plc (in administration)

This site provides information regarding the progress of the administration of Lehman Brothers Holdings plc (“LBH”) and will be updated as and when new information becomes available.

LBH entered administration on 15 September 2008. The current Joint Administrators are Edward John Macnamara, Gillian Eleanor Bruce and David James Kelly. The Joint Administrators manage LBH’s affairs, business and property as agents without personal liability. All the Joint Administrators (the “Administrators”) are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

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Timeline

Lehman Brothers Holdings plc (LBH) entered administration on 15 September 2008, along with other UK affiliates of the global Lehman Brothers Group, after the parent company filed for Chapter 11 bankruptcy in the US.
The administrators proposed to achieve a better result for LBH's creditors than a liquidation, by realising all assets, mitigating and agreeing claims, and managing the subsidiaries. A creditors' committee was elected on 21 November 2008, consisting of five members from other Lehman entities.

LBH received the sum of $74m (£47m) from the sale of its subsidiary Lehman Brothers Asset Management (Europe) Limited (LBAMEL) in May 2009.
The administrators conducted a detailed review of LBH's assets, which included investments in subsidiaries, financial assets, and inter-company debts.

The administrators applied to the court to extend the administration period to 30 November 2010, which was granted.

The High Court granted the second extension of the administration period to 30 November 2011.
The administrators received dividends from two of LBH's subsidiaries, Lehman Brothers Special Financing Inc. (LBSFI) and Lehman Commercial Paper Inc. (LCPI), totalling $0.9m and $0.5m respectively.

The administrators received the first distributions from LBSF and LCPI in April and October 2012, totalling $4.14 million.
The administrators applied to the court to extend the administration period to 30 November 2013, which was granted.

The administrators received further distributions from LBSF and LCPI in April and October 2013, totalling $0.78 million.
The administrators participated in a series of applications made by LBH's subsidiaries, collectively referred to as the Waterfall applications, aimed at clarifying how the administrators should treat and calculate the value of various claims between the parties.
The administrators also faced a potential liability under a Financial Support Direction (FSD) issued by the Pensions Regulator to LBH and other Lehman group companies in relation to the Lehman Brothers Pension Scheme. The case in the Supreme Court relating to the status of liability under an FSD was due to be heard in May 2013.

The Supreme Court ruled in favour of the administrators in the FSD case, confirming that an FSD issued after the commencement of an administration does not rank as an expense of the administration.
The administrators declared and paid a second interim dividend of 2p in the £ to LBH's unsubordinated unsecured creditors on 10 February 2014. The High Court granted the fourth extension of the administration period to 30 November 2015.

LBH received a further distribution of £61.9 million from its intercompany debtors, mainly from LBHI2.
LBH also applied to the High Court of Justice to determine the relative priority ranking of the subordinated claims of LB GP No.1 Limited (LBGP) and LBHI against LBH, which affected the potential recoveries of LBH's subordinated creditors (the Priority Application).

The administrators received a further dividend from LBSFI of $0.3m. 10 20 32 37 The administrators declared and paid a third interim dividend of 62.963p in the £ to LBH's unsubordinated unsecured creditors on 6 September 2016.
The High Court granted the fifth extension of the administration period to 30 November 2020.

LBH received a further distribution of £244 million from its intercompany debtors, mainly from LBHI2, of which it retained £122 million under the worldwide sharing agreement with other Lehman estates.
LBH also paid its fourth dividend of 18.587 pence in the pound to its unsecured unsubordinated creditors on 13 September 2018, which included a share of statutory interest.

The administrators received further dividends from Mable Commercial Funding Limited (£13.6m and £1m), LBO Investments Limited (£8.8m), and Lehman Brothers (PTG) Limited (£0.6m and £0.2m).
The administrators also received a further recovery from LBHI2 of £107.9m. The administrators paid a fourth interim dividend of 23.54p in the £ to LBH's unsubordinated unsecured creditors on 6 September 2018.

LBH received a further distribution of £0.8 million from its intercompany debtors, mainly from LBHI2.
LBH also settled the Clawback Litigation with LBHI and other parties in January 2020, following which the Clawback Proceedings were dismissed.

LBH received a further distribution of £0.7 million from its intercompany debtors, mainly from LBHI2.
LBH also obtained the fifth extension of its administration until 30 November 2020 and received the first instance judgment in the Priority Application on 3 July 2020, which ruled that LBH's subordinated debt claim against LBHI2 ranks senior to that of LBGP.

LBH received a further distribution of £0.8 million from its intercompany debtors, mainly from LBHI2.
LBH also obtained the sixth extension of its administration until 30 November 2022 and received the Court of Appeal's judgment in the Priority Application on 16 November 2021, which upheld the first instance ruling in favour of LBH.

LBH received a further distribution of £0.7 million from its intercompany debtors, mainly from LBHI2.
LBH also entered into a framework agreement with LBHI, LBGP, and certain other parties on 31 October 2022, which provided for the withdrawal of four of the five priority legal issues from the second priority application and the division of future distributions to LBH's subordinated creditors.

LBH received a further distribution of £110 million from its intercompany debtors, mainly from LBHI2.
LBH also relisted the loan notes issued to LP I, LP II, and LP III in 2005 and 2006 on the Vienna Stock Exchange on 12 October 2023 and planned to make a significant distribution to its subordinated creditors before the end of 2023.

Contacts

Office address:
PricewaterhouseCoopers LLP
7 More London Riverside, London SE1 2RT

Queries: uk_lehmanaffiliates@pwc.com

_{Edward John Macnamara, Gillian Eleanor Bruce and David James Kelly are are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales. The Joint Administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics}

^{The Joint Administrators may act as controllers of personal data, as defined by the UK data protection law, depending upon the specific processing activities undertaken. PricewaterhouseCoopers LLP may act as a processor on the instructions of the Joint Administrators. Personal data will be kept secure and processed only for matters relating to the Joint Administrators' appointment. Further details are available in the privacy statement on the PwC.co.uk website or by contacting the Joint Administrators.}