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Investors one step closer to relief after Lehman collapse
The bankruptcy trustee of Lehman Brothers has been defeated in its attempts to claim $125 million of notes from the collapsed investment bank.The decision, handed down on Friday, will be warmly…
Lawyers Weekly
The bankruptcy trustee of Lehman Brothers has been defeated in its attempts to claim $125 million of notes from the collapsed investment bank.
Perpetual Trustee was represented in the action by Henry Davis York partners Scott Atkins and Alex Mufford, together with English lawyers from Sidley Austin.
The notes were frozen from Mahogany Capital following the Lehman collapse, and Perpetual Trustees has been engaged in a six-month legal battle to recover collateral which could be used to repay Mahogany noteholders.
While the decision is a win for investors, the war might not be quite over, with Lehman Brothers Special Financing having sought leave for an appeal to the UK Supreme Court, and separately moving to obtain a parallel judgment in the US. It is also not yet clear whether the collateral, which is now held by BNY Corporate Trustee Services, will be released.
