Lehman UK arm to sue parent firm for USD 100 bn

Written by times of india

Sunday, 30 August 2009 20:41

The UK arm of Lehman Brothers is preparing a USD 100-billion claim against its former parent company in
the US.

"Administrators of the London arm of Lehman Brothers, the Wall Street bank that collapsed a year ago, are preparing a USD 100 billion (about 61.5 billion pounds) claim against its former parent company in America," the Sunday Times has reported.

The demand is being finalised by Price Waterhouse Coopers (PWC), Lehman's UK administrator and would be lodged in the next few weeks.

According to the report, the move would mark an acrimonious new stage in the international battles by creditors to recover billions still tied up in the largest corporate collapse in history.

Lehman owed as much as USD 613 billion when it collapsed in September last year. The US bankruptcy court has set the deadline of September 22 for all creditors to file their claims.

Quoting Tony Lomas, one of the partners at PWC leading the case, the report noted that he would file the claim on behalf of "more than 100" Lehman units that fall under the London umbrella.