Hedge funds may get $11 bln frozen at Lehman
Tuesday, November 24, 2009 : PermalinkReuters – Lehman Brothers International (Europe), where more than $35 billion of hedge fund assets have been frozen since the bank’s collapse last September, could return about $11 billion to fund managers by March if enough firms approve a new plan.
PricewaterhouseCoopers [PWC.UL], administrators for bankrupt Lehman’s London-based unit, announced on Monday a proposal that would let hedge funds recover their assets held in custody by Lehman Brothers International (Europe), or LBIE. The scheme requires approval by 90 percent of Lehman’s clients.
“This agreement has been negotiated over the last six months and will now allow us to return a further $11 billion or so of trust assets to their rightful owners,” Steven Pearson, joint administrator for LBIE and a PricewaterhouseCoopers partner, said in a statement.