Lehman Brothers Holdings Plc, Re

Lehman Brothers Holdings Plc, Re

The court found that the complexity of the Lehman group administrations, ongoing litigation affecting distributions and priorities, and the absence of creditor objection constitute good reason for extension. The alternative of liquidation would be more costly and less advantageous to creditors. Therefore, the applications for extension are granted as sought.

Parties
Applicant: Lehman Brothers Holdings Plc (in administration); Applicant: LB Holdings Intermediate 2 Limited (in administration); Applicant: Lehman Brothers Limited (in administration); Applicant: Eldon Street Holdings Limited (in administration); Applicant: LB UK RE Holdings Limited (in administration)
Jurisdiction
England and Wales
Judgment Date
02 November 2020
Procedural Posture
Insolvency/administration Extension Application / Application for Extension of Administration
Outcome
applications for extension of administration granted
Legal Topics
Administration Extension, Creditor Interests, Liquidation Alternatives, Cross Border Insolvency, Statutory Interest, Priority of Claims
Insolvency Law Company Law Administration Extension Creditor Interests Liquidation Alternatives Cross Border Insolvency Statutory Interest Priority of Claims

Case Brief

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Parties

Lehman Brothers Holdings Plc (in administration)

Applicant

LB Holdings Intermediate 2 Limited (in administration)

Applicant

Lehman Brothers Limited (in administration)

Applicant

Eldon Street Holdings Limited (in administration)

Applicant

LB UK RE Holdings Limited (in administration)

Applicant

Procedural Posture

Insolvency/administration Extension Application / Application for Extension of Administration

Legal Issues

  1. 1 Whether to grant further extensions of administration for the applicant companies
  2. 2 Whether the statutory requirements and judicial discretion for extension are satisfied
  3. 3 Whether liquidation would be preferable to continued administration

Ratio Decidendi

The court found that the complexity of the Lehman group administrations, ongoing litigation affecting distributions and priorities, and the absence of creditor objection constitute good reason for extension. The alternative of liquidation would be more costly and less advantageous to creditors. Therefore, the applications for extension are granted as sought.

Court Disposition

applications for extension of administration granted

Orders

  • Extension of administration for Lehman Brothers Holdings Plc, LB Holdings Intermediate 2 Limited, Lehman Brothers Limited, and Eldon Street Holdings Limited for two years from 30 November 2020.
  • Extension of administration for LB UK RE Holdings Limited for one year from 30 November 2020.