Creditors of Lehman Brothers International Europe (LBIE) may receive their first payouts next year, according to Lehman Brothers administrator PwC.
Join administrators said they have raised £1.8bn ($2.8bn) in cash from house assets in the past six months, bringing the total so far to £12.6bn.
“The past six months have seen significant progress on a number of key issues. In the period we settled our claims against Citigroup relating to some £2 billion of cash and assets held around the world, the majority of which has now been recovered. This has been the single, largest settlement of its kind, to date, in the administration,” PwC partner Tony Lomas said.
“In recent weeks, we have also materially progressed our discussions with a number of other Lehman Affiliates. We have agreed claims between LBIE and a number of Hong Kong based Lehman companies and we have reached agreement in principle with LBHI and other US-based Lehman companies that are in Chapter 11 bankruptcy proceedings.”
Administrators still face legal appeals, including a Supreme Court hearing where former LBIE clients are attempting to access creditor funds. The outcome of this case could affect the values that are eventually paid out to creditors while delaying the payout process.
“Notwithstanding these major, continuing difficulties, we remain hopeful of making a first, interim distribution to creditors at some stage during 2012,” Lomas said.