Law firms set for payouts in wind-down of Lehman's Europe operations
More than 30 law firms owed money by Lehman Brothers International Europe (LBIE) are in line for a payout, after the bank's administrators PwC confirmed a group of creditors would be entitled to distributions in the New Year.
December 05, 2013 at 08:18 AM
2 minute read
More than 30 law firms owed money by Lehman Brothers International Europe (LBIE) are in line for a payout, after the bank's administrators PwC confirmed a group of creditors would be entitled to distributions in the New Year.
All five magic circle firms, as well as Skadden Arps Slate Meagher & Flom, Weil Gotshal & Manges and Bingham McCutchen, are on a 300-strong list of creditors set to recoup funds, as part of the wind-down of LBIE.
Last week, PwC confirmed that trade creditors – including law firms, banks and consultancies – who were previously ineligible for an earlier distribution round, would now recoup fees charged to LBIE before it fell into administration in 2008.
A PwC spokesperson confirmed creditors on this list stood to gain from the payout, but declined to provide a breakdown of amounts each firm would receive.
While a number of the firms will probably net payouts in the hundreds of thousands of pounds, several firms told Legal Week the amounts they were owed by LBIE were minimal.
"Our accounts team had just written it off – the amount was negligible," said a spokesperson at one US firm.
Other firms owed money by the collapsed bank include Simmons & Simmons, Ashurst and Nabarro, as well as the Warsaw office of Dewey & Leboeuf, itself now in administration.
In March, Linklaters and Davis Polk & Wardwell pushed through a landmark settlement resolving LBIE's dealings with Lehman Brothers Inc (LBI), and the complex intercompany claims and liabilities between the parties.
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