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Reuters Summit-UPDATE 1-Europe arm to claim $200 bln from Lehman

Published 09/28/2009, 01:00 PM
Updated 09/28/2009, 01:03 PM
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(For other news from the Reuters Restructuring Summit, click on http://www.reuters.com/summit/Restructuring09?PID=500)

* Lehman Europe plans $150 billion claim against parent

* External claims against Europe less than $100 bln

* Appealing court decision rejecting proposed deal

(Adds quotes, detail of court case)

By Tom Freke

LONDON, Sept 28 (Reuters) - The administrator of Lehman Brothers in Europe expects to claim more than $200 billion from other parts of the failed investment bank, he told the Reuters Restructuring Summit on Monday.

Tony Lomas, chairman of business recovery services at PricewaterhouseCoopers, said more than $150 billion of claims will be made against Lehman Brothers' U.S. parent and subsidiaries, in addition to more than $50 billion from other Lehman units across the world.

"We will eventually claim dividends on whatever claims are proven and we will pay dividends in due course on those claims against our estate," he said.

Claims from other Lehman units against Lehman in Europe so far totalled about $10 billion, Lomas said.

Lomas said the process of returning client funds would continue despite a recent court setback, and he expected a solution would be found by the first quarter of 2010.

He estimated total external claims to be in the "many tens of billions of dollars" but less than $100 billion.

In August a London judge rejected a scheme of arrangement proposal from PricewaterhouseCoopers, who are now appealing the judgement.

Whatever the court's decision, Lomas said the ultimate solution to returning funds will be similar to the scheme.

"We are not tearing up the scheme and moving on -- around 90 percent of the scheme the judge did not have an issue with ... so the 90 percent we will leave intact," Lomas said.

Any alternative solution might use trust law, Lomas said, or could be "a simple transactional arrangement" with the businesses that have put in claims. (For summit blog: http://blogs.reuters.com/summits/) (Reporting by Tom Freke; Editing by Dan Lalor)

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