LONDON (Reuters) - The European arm of Lehman Brothers will pay out 1.76 billion pounds to unsecured creditors later this month, the first time these clients have had money back from the U.S. bank since it collapsed in 2008.
PricewaterhouseCoopers, which has been paid 563 million pounds so far to handle the British part of the Lehman administration, said on Friday a payment of 25.2 pence in the pound will be made at the end of the month.
“This has been the result of the collective efforts and co-operation of Lehman Brothers International Europe’s unsecured creditors, other stakeholders and the team working on the LBIE administration,” said Tony Lomas, partner at PwC.
Lehman’s collapse in 2008 was the trigger for a full-blown financial crisis which caused trillions in losses across the globe and left governments with huge bills for the resulting bank bailouts which they are still paying off.
PwC said it has agreed 1,582 claims with unsecured creditors totalling 7 billion pounds. The auditors are still in the process of agreeing close to 700 more claims worth 1.3 billion pounds, but there are also billions in secured claims outstanding, many of which are the subject of complicated legal cases.
PwC said payouts have been delayed as it has to verify all claims before both parties can agree on what it hands out.
The accounting firm also said last month it planned to make a first distribution from yet another pool of client money next year, and it will be recovering another $8 billion (5 billion pounds) of segregated securities and cash from another part of Lehman’s estate, to be returned to clients of Lehman Europe.
Editing by Patrick Graham