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Lehman Sues Barclays for $5 Billion Plus Damages
<iframe src="http://www.bloomberg.com/apps/news?pid=20601208&sid=aSE.n6nVdSME" height="555" width="888">
Tiffany Kary
Bloomberg
November 18, 2009
Lehman Brothers Holdings Inc.’s bankrupt estate and a trustee for its brokerage both sued Barclays Plc, seeking the return of a $5 billion “windfall.”
Lehman seeks a trial to recover the money, along with damages, according to the lawsuit, filed yesterday as an adversary proceeding in Lehman’s main case in U.S. Bankruptcy Court in Manhattan. Undisclosed features of the sale included $5 billion to $7 billion in excess collateral under a repurchase agreement, $2.7 billion added while a sale hearing in court was in progress, and $2.3 billion in margin deposits added after the sale was approved, lawyers for Lehman said.
“The sale transaction was secretly structured from the outset to give Barclays an immediate and enormous windfall profit,” lawyers for Lehman said, claiming some Lehman executives knew the information without revealing it to the company’s management, board or attorneys.
<iframe src="http://www.bloomberg.com/apps/news?pid=20601208&sid=aSE.n6nVdSME" height="555" width="888">
Tiffany Kary
Bloomberg
November 18, 2009
Lehman Brothers Holdings Inc.’s bankrupt estate and a trustee for its brokerage both sued Barclays Plc, seeking the return of a $5 billion “windfall.”
Lehman seeks a trial to recover the money, along with damages, according to the lawsuit, filed yesterday as an adversary proceeding in Lehman’s main case in U.S. Bankruptcy Court in Manhattan. Undisclosed features of the sale included $5 billion to $7 billion in excess collateral under a repurchase agreement, $2.7 billion added while a sale hearing in court was in progress, and $2.3 billion in margin deposits added after the sale was approved, lawyers for Lehman said.
“The sale transaction was secretly structured from the outset to give Barclays an immediate and enormous windfall profit,” lawyers for Lehman said, claiming some Lehman executives knew the information without revealing it to the company’s management, board or attorneys.
