Lehman Brothers PTG Limited (in administration)

This site provides information regarding the progress of the administration of Lehman Brothers (PTG) Limited (“LB PTG”).

LB PTG entered administration on 6 November 2008. The current Joint Administrators are Gillian Eleanor Bruce, Edward John Macnamara and David James Kelly. The Joint Administrators manage LB PTG' 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.

Information

Timeline

In 2009, the Administrators of LB PTG pursued the objective of achieving a better result for the creditors than in a liquidation, and focused on realising the assets of the Company, mainly its interests in real estate and intercompany receivables.
The Administrators also applied to the Court to extend the Administration period to 30 November 2010, as they had not yet determined the most appropriate exit route.

Administrators continued to work on the strategy of maximising the returns from the assets of LB PTG, and received further realisations from the Italian real estate investments.
The Administrators also faced the risk of a Financial Support Direction (FSD) being imposed by the Pensions Regulator in relation to the Lehman Brothers Pension Scheme, which could affect the dividend prospects for the creditors.

In 2011, the Administrators entered into a settlement agreement with Lehman Brothers Holdings Inc (LBHI) and certain other affiliates, which agreed in principle the claims of LBHI and Lehman Commercial Paper Inc (LCPI) against LB PTG.
The Administrators also applied to the Court to further extend the Administration period to 30 November 2011, and later to 30 November 2013, as the FSD issue remained unresolved.

In 2012, the Administrators participated in the Upper Tribunal hearing to seek an order to strike out the Trustees' referral of the FSD issue, but the Tribunal declined to do so, leaving LB PTG still at risk of a FSD.
The Administrators also prepared and circulated their sixth progress report, and drew remuneration of £1,099,066 plus VAT for the period from 6 November 2008 to 31 December 2011.

In 2013, the Administrators obtained permission from the Court to agree and pay a dividend to the unsecured non-preferential creditors of LB PTG, and declared and paid a first interim dividend of 7.5 pence in the £ on 29 October 2013.
The Administrators also appealed the Upper Tribunal's decision on the FSD issue to the Court of Appeal, and the hearing took place in April and May 2013.

In 2014, the Administrators of LB PTG paid a first interim dividend of 7.5p in the pound to unsecured non-preferential creditors, after obtaining permission from the Court in June 2013.
They also participated in a High Court application relating to the maximum quantum of any Contribution Notice that could be issued to LB PTG as a potential target of a Financial Support Direction by the Pensions Regulator.

In 2015, the Administrators paid a second interim dividend of 10.42p in the pound in September and a third interim dividend of 7.52p in the pound in March, bringing the cumulative dividend to 25.44p in the pound.
They also received a final refund of pre-appointment Corporation Tax from HMRC and redistributed it to certain group companies, resulting in a net benefit of £225,724 to LB PTG.

In 2016, the Administrators paid a fourth interim dividend of 6.06p in the pound in March, bringing the cumulative dividend to 31.5p in the pound.
They also obtained a fifth extension of the Administration period to 30 November 2017, and continued to monitor and manage the investments in LB PTG's subsidiaries, including ESH and Mable.

In 2017, the Administrators paid a fifth interim dividend of 2.55p in the pound in September and a sixth interim dividend of 3.488p in the pound in March, bringing the cumulative dividend to 37.548p in the pound.
They also prepared and submitted the corporation tax returns for 2016 and 2017, and considered the implications of the Finance (No.2) Act 2017 for the utilisation of losses in LB PTG and the wider group.

In 2018, the Administrators of LB PTG received a distribution of €102k from Initium, an Italian subsidiary in insolvency proceedings, and submitted the 2017 corporation tax return to HMRC.
They also applied to the Court for a further extension of the Administration to 30 November 2019, which was granted.

In 2019, the Administrators paid a 10th interim distribution of £1,783,453 to creditors, bringing the cumulative dividend to 53.672 pence in the pound.
They also awaited the outcome of the Priority Application and the Clawback Proceedings, which affected the recoveries from ESH and LBH, the main assets of LB PTG.

In 2020, the Administrators received the Court's Judgement on the Priority Application, which found that LBH's subordinated debt claim against LBHI2 ranked senior to that of SLP3, a controlled subsidiary of LBHI.
They also submitted the 2019 corporation tax return to HMRC and met their obligations under the Senior Accounting Officer legislation and the Corporate Criminal Offence rule.

In 2021, the Administrators paid an 11th interim distribution of £970,845 to creditors, bringing the cumulative dividend to 54.203 pence in the pound.
They also applied to the Court for another extension of the Administration to 30 November 2023, which was granted.

Outcome of the subordinated debt litigation, which affects the recoveries from Eldon Street Holdings Ltd (ESH), the principal remaining asset of Lehman Brothers (PTG) Limited (LB PTG).
The Supreme Court refused the application to appeal by SLP3, a junior creditor of LB Holdings Intermediate 2 Limited (LBHI2), confirming that LBH's subordinated debt claim against LBHI2 ranks senior to SLP3. This means that LBH, and indirectly ESH and LB PTG, have a higher priority to receive distributions from LBHI2 than SLP3.

In 2023, the Administrators received the Court of Appeal Judgment on the Priority Application, which upheld the earlier decision that LBH's subordinated debt claim against LBHI2 ranked senior to that of SLP3.
They also prepared and issued their 30th progress report to creditors and continued to manage the remaining assets and liabilities of LB PTG

Contacts

If you have any queries in relation to LB PTG's administration, please send an email to uk_lehmanaffiliates@pwc.com.

_{Edward John Macnamara, Gillian Eleanor Bruce and David James Kelly 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.}