High Court rejects PwC’s plan in Lehman Brothers’ case
Clients of Lehman Brothers, the American investment bank that collapsed almost a year ago in Europe, may still have to wait longer to get their assets back after a plan aimed at recovering up to $16bn (£9.7bn) of assets was rejected by the High Court.
The administrators to the Lehman Brothers International, PricewaterhouseCoopers had asked the High Court to approve the plan.
PwC had hoped to save time by placing more than 1,000 creditors in three different classes and paying them in groups rather than as individuals.
But, Justice Blackburne said the court did not the jurisdiction to modify Lehman Brothers International clients' claims, which is indispensable to approve the plan.
Lehman Brothers in Europe possessed in excess of $30 billion of client assets at the time of its collapse.
Steven Pearson, an associate of PwC, said, "I am disappointed because the scheme was seeking to get return [of the] assets to clients quickly and this judgment will create further delay."
PricewaterhouseCoopers has been given 21 days to appeal the verdict.