PwC: Client Assets Update - Securities Investor Protection Corporation (‘SIPC’) Customer Omnibus Claim
July 21, 2011
PWC have published an update concerning LBIE's SIPC Customer Omnibus Claim ("Omnibus Claim") against Lehman Brothers, Inc. ("LBI"). As previously communicated, LBIE received an initial determination of its Omnibus Claim from the SIPA Trustee of LBI (The "Trustee") on 16 September 2010 (the "Determination").
The Determination stated that the Omnibus Claim for securities had been allowed for a defined list of securities and quantities valued by the Trustee at $6.2 billion. The Trustee deferred his determination in respect of cash balances owed to LBIE clients for a minimum of 30 days and, with respect to commodities and futures, LBIE's claim was denied.
LBIE received a revised Letter of Determination from the Trustee on 19 May 2011 (the "Revised Determination") which replaces the previous Determination. The Trustee has valued his Revised Determination at $8.3 billion, subject to significant conditions.
The SIPC rules allow LBIE to object to the Revised Determination. The Trustee has extended the deadline for LBIE to object to the Revised Determination until 31st October 2011 thereby allowing both estates to continue to co-operate in resolving a number of outstanding matters.