Lehman Brothers International Europe (LBIE) is getting closer to repaying 100% of its debt, according to its administrators PwC UK.
The European arm of the financial services company that collapsed five years ago is expected to return a total of £40bn to creditors, according to PwC UK. For now, unsecured creditors are to expect a large pay-out in November.
A PwC UK report in March estimated an outcome of 116.2p to the pound for unsecured creditors. The latest report due to be released in September estimates a higher figure.
PwC UK has already paid 68.5p to the pound to unsecured creditors and it expects the eventual return to be 100p plus interest, according to joint administrator and PwC partner Tony Lomas.
"The exact amount of interest payable will depend on the outcome of an autumn UK High Court case which will decide whether unsecured creditors' rights to interest come before a £1.3bn debt claim filed by one of LBIE's shareholders, LBHI2," Lomas stated.
About £21bn of assets have been returned since the start of PwC's administration and the accounting firm hopes to return another £6bn to trust assets later this month, PwC UK said.
It also remarked that the return of 100% of unsecured, trust asset and client money assets from a bankrupt estate was made even more unlikely given the complexity of LBIE.
A total of 2,100 unsecured creditor claims worth £9bn have been admitted to the LBIE estate. Another 1,300 unsecured creditor claims worth £7.5bn have also been filed but have yet to be agreed.
PwC UK warns that many of the claims are disputed, and some are likely to become the subject of ligation.
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PwC UK
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Lehman Brothers to repay creditors, PwC UK
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