CORRECT (09/24): Major Banks, Govts, Funds Claim On Lehman
September 25 2009 - 11:41AM
Dow Jones News
Major financial institutions including Barclays Bank PLC (BCS)
and Morgan Stanley (MS), Abu Dhabi's sovereign wealth fund and
hedge fund GLG Partners (GLG) are among the claimants seeking money
from collapsed investment bank Lehman Brothers, according to
filings on the claims administrator's Web site.
In one of its claims, Barclays is demanding as much as $1.34
billion in respect of guarantees given under derivatives contracts;
Morgan Stanley's largest claim for $1 billion is also connected to
Lehman's role as counterparty on trades with the investment bank;
other banks making claims on derivative contracts include Lloyds
Banking Group's (LYG) unit Bank of Scotland, and Swiss bank UBS AG
(UBS).
The carnage caused by the collapse of Lehman Brothers just one
year ago goes far beyond companies in the financial sector and
ranges from amounts as high as $48 billion being claimed by
bondholders represented by the U.S.' Wilmington Trust Co. to just a
fistful of dollars in the case of private investors and
borrowers.
The Association of German Banks is asking for just under $26
billion relating to contracts between its member banks and Lehman
Brothers, while pension funds including the New York State
Teachers' Retirement plan also submitted hefty claims.
New York State wants $1.2 billion in back taxes and New York
City, where Lehman Brothers had its headquarters, submitted a $627
million tax bill for unpaid commercial rent tax and general
corporation tax going as far back as 1996.
Missed rent on Lehman's 30-year lease at London's Canary Wharf,
the center of the bank's U.K. operations, comes to more than $2.6
billion, according to the building owner's filing, which asks for
more than $4 billion in all.
A hospitality event is behind the $126,000 being claimed by the
Mandarin Oriental Hotel in Washington, D.C., where 30 people were
scheduled to be entertained at Lehman's expense.
Lehman Brothers filed for bankruptcy protection overnight
Sunday, Sept. 14, 2008, in the U.S. with its European operations
being put into administration the following day. The collapse of
one of the world's largest banks paralysed financial markets and
heralded the disappearance of Bear Stearns while Bank of America
(BAC) subsequently took over Merrill Lynch.
All claims must have been filed with the U.S. bankruptcy court
in New York, which is handling the Chapter 11 proceedings, by Sept.
22. Creditors claiming under derivatives contracts or guarantees
must also provide more details and supporting documents on the
dedicated Web site being managed by Epoeq Bankruptcy Solutions by
Oct. 22.
-By Marietta Cauchi and Margot Patrick, Dow Jones Newswires; +44
207 842 9241; marietta.cauchi@dowjones.com