Lehman’s European Plan Approved in New York Bankruptcy Court

Lehman Brothers International (Europe) won the help of U.S. courts in winding down its remaining assets under a “scheme of arrangement” devised in the U.K.

U.S. Bankruptcy Judge Shelley Chapman in Manhattan court June 19 approved a Chapter 15 petition for the unit, which helps it enforce the plan in the U.K. Chapter 15 of the Bankruptcy Code is designed for the U.S. court to assist an insolvency principally pending in another country.

Like the Lehman Brothers units in the U.S., Lehman Brothers International “spawned multiple complex litigations in Europe that have been ongoing for several years,” Robert Trust, a partner at Linklaters, told Chapman. He said that U.K. creditors had approved the plan.

The unit filed for bankruptcy in May, announcing a surplus that can’t be distributed before key disputes were resolved.

The case is In re Lehman Brothers International (Europe) (in administration), Bankr. S.D.N.Y., No. 18-11470, hearing 6/19/18.

©2018 Bloomberg L.P. All rights reserved. Used with permission