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PwC unveils £7.3bn Lehman pay out plan

THE ADMINISTRATORS of Lehman Brothers’ European business could start to divvy up roughly £7.3bn in cash from the fallen bank if creditors give a new claims plan the green light.

PricewaterhouseCoopers (PwC), which was appointed as joint administrator of Lehmans in 2008, unveiled the plan referred to as the “Consensual Approach” that could see the first cash distribution made by 2011.

The proposed payback represents roughly half of the total unsecured claims, currently valued up to $22bn (£14.8bn), and will see a universal approach taken to all claims.

Steven Pearson, joint administrator and partner at PwC said: “The consensual approach is an innovative mechanism which will enable the claims to be determined in an expeditious manner, resulting in significant time and cost savings to both unsecured creditors and Lehman Brothers Europe.”

Pearson, alongside partners Tony Lomas and Mike Jervis were appointed as joint administrator two years ago.

The consensual approach is still subject to creditor approval and could be launched in the autumn.

TONY LOMAS PWC
THE 2008 fall of Lehman Brothers has raised Tony Lomas’ already distinguished career up a few notches.

The PricewaterhouseCoopers (PwC) chairman of business recovery services was already a well known name before he was tasked with one of the most complex administrations of this decade.

Lomas, who made partner at PwC in 1990, was handed the mammoth task of sorting through the stricken bank’s European dealings almost two years ago when news of Lehman’s collapse sent shockwaves across the Atlantic.

On top of sifting through Lehman’s accounts, Lomas is also leading the administration of Enron’s European operations and the fall of MG Rover Group’s production facilities.

Lomas, who is described as “straightforward, up-front and focused” has spent the majority of his career advising on the restructuring and administration of large companies in the US, Europe and South East Asia.

Previous work for Lomas includes giving restructuring advice to banks and bond debt groups across a number of industry sectors.

It is likely that the Lehman administration will keep Lomas busy for the next decade.