COUNTERPARTIES who lost out on trades with Lehman Brothers when the investment bank filed for bankruptcy in September 2008 received the first tranche of their money back yesterday.
Administrators PwC announced the $7.8bn (£4.9bn) repayment, which amounts to 100 per cent of the claims made by a group known as the Omnibus Trust.
More payments are expected next year once tax and other liabilities have been resolved.
“This distribution is a landmark event for Lehman Brothers International Europe (LBIE),” said Owen Littman, a member of the creditors committee. “Through the tremendous collaborative effort of the administrators, creditors’ committee and trust creditors to achieve a novel solution, creditors are receiving significant value for their LBIE omnibus trust asset claims that were severely discounted following the collapse of Lehman Brothers.”