Lehman Brothers creditors set for a full refund, 4 years after bank's collapse
Daily Mail Reporter
21:34 GMT, 15 April 2013
21:34 GMT, 15 April 2013
Creditors of the UK-based arm of Lehman Brothers were told on Monday they are likely to get all their money back more than four years after the collapse of the investment bank.
The administrator to Lehman’s European operations, which had its headquarters in London, said there was ‘a reasonable chance’ that nearly 15billion will be paid to creditors.
Those in line for the cash range from the mundane such as office suppliers and electricity providers to sophisticated financial players including hedge funds and other banks.
Collapse: Lehman Brothers went bust in 2008
Tony Lomas, lead administrator at
PwC, said it marked a ‘significant milestone’ following the demise of
the once-mighty US investment bank.
The collapse of Lehman Brothers in
September 2008 triggered the worst financial crisis for nearly a century
and plunged the global economy into a devastating recession. News that
the creditors of the bank will be repaid in full raised eyebrows at a
time when the wider economy is still suffering from the fallout of the
Lehman Brothers International Europe,
which was based in London’s Docklands, was the largest and most complex
arm of the investment bank when it went bust in 2008 in the largest
corporate bankruptcy. The European arm owes 14.2billion to unsecured
creditors. An initial 1.8billion payment was made in November last
Lomas said another payment of around
2billion will be made before the summer although it will take years
before all the money is returned.
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