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Lehman creditors face some losses | |
(30 minutes later) | |
Some creditors of the European arm of failed bank Lehman Brothers will likely lose their money, the bank's administrators have said. | |
However, it will take time before it becomes clear how much, they added. | |
Billions of dollars of bad debt forced Lehman Brothers to file for bankruptcy protection on 15 September. | Billions of dollars of bad debt forced Lehman Brothers to file for bankruptcy protection on 15 September. |
PricewaterhouseCoopers is the administrator to the European arm and the process of unravelling the firm's trades is expected to take many years. | PricewaterhouseCoopers is the administrator to the European arm and the process of unravelling the firm's trades is expected to take many years. |
Lehman's was the largest US bankruptcy filing in history. | |
"The prospect is that some creditors will lose money. How much - we can't determine that for a significant time," said joint administrator Tony Lomas after a meeting in London. | |
The process could take as long as seven years and would be "10 times" more complicated that the bankruptcy of US energy firm Enron, Mr Lomas said. | |
Deals | |
PWC has already negotiated a deal with Nomura, which is to buy Lehman's European and Middle Eastern equities and investment bank operations. | PWC has already negotiated a deal with Nomura, which is to buy Lehman's European and Middle Eastern equities and investment bank operations. |
And it plans to retain 1000 staff in London and will pay them their 2007 bonuses. | And it plans to retain 1000 staff in London and will pay them their 2007 bonuses. |
Nomura is also buying the bank's franchise in the Asia Pacific region. | Nomura is also buying the bank's franchise in the Asia Pacific region. |
Barclays has bought Lehman's North American investment banking and capital markets divisions. | Barclays has bought Lehman's North American investment banking and capital markets divisions. |
Lehman is also facing legal actions around the world. | Lehman is also facing legal actions around the world. |
Deutsche Bank said it has sued the bank to recover $72.5m (£49.2m) it says was accidentally transferred to Lehman after it had filed for bankruptcy. | Deutsche Bank said it has sued the bank to recover $72.5m (£49.2m) it says was accidentally transferred to Lehman after it had filed for bankruptcy. |