Statement of the Office of the Trustee of Lehman Brothers Inc. (LBI) |
|
By: James W. Giddens, the Trustee for the Liquidation of Lehman Brothers Inc. Posted: 2009-11-12 03:58:37 |
|
James W. Giddens, the Trustee for the Liquidation of Lehman Brothers Inc. (LBI), with assistance of his counsel at Hughes Hubbard & Reed LLP, today filed his Second Interim Report for the period May 30 to November 11, 2009 with the United States Bankruptcy Court for the Southern District of New York. The Trustee has now administered more than $110 billion in the Securities Investor Protection Act (SIPA) liquidation of the largest broker-dealer ever to fail and one of the largest and most complex insolvency proceedings in history. The Report is available on the Trustee's website.
The Trustee's principal duty is to return securities and cash to customers and maximize assets for distribution from the estate. Following his court appointment on September 19, 2008, the Trustee successfully transferred more than 110,000 accounts aggregating in excess of $92 billion to other broker-dealers -- thereby preserving liquidity and market access to the greatest extent possible following Lehman's demise. During the Report Period, the Trustee took steps to complete transfers and resolve open positions as described in the Report. As of the June 1, 2009 deadline for filing claims, the Trustee received more than 12,500 asserted customer claims on behalf of more than 86,000 accounts, along with more than 7,500 general estate claims. The Trustee has already determined more than 85% of asserted public customer claims, and has made substantial progress in the reconciliation of customer claims asserted by, among others, Lehman Brothers Holdings Inc. and Lehman Brothers International (Europe), with the latter alone involving reconciliation of in excess of 200,000 failed securities transactions. To help satisfy such claims, the Trustee has filed an allocation motion with the Court to determine how much of the roughly $18 billion currently available to the estate (along with any future recoveries) will be available in the fund of "customer property" -- a priority pool of assets available only to satisfy allowed customer claims. The Trustee continues to actively marshal assets and is now pursuing unwinds and customer receivable positions, which so far have resulted in a return of more than $700 million. |
| Trackback url: https://press.abc-directory.com/press/5388 |