The parties asked the court to rule on a question which has arisen about the legal status of certain payments made, or expected to be made, to the Company by the administrators of its wholly-owned subsidiary, Lehman Brothers UK Holdings Limited (‘LBUKH’). The payments in question are part repayments of subordinated loans made by the Company to LBUKH under three subordinated loan facility agreements (two long term, and one short term) made between June 2004 and July 2005. The issue, in short, is whether the repayments should be held in trust for LBUKH and/or any as yet unknown creditors of LBUKH, or whether the repayments are held by the Company free from any trust and are available, in particular, for distribution to the Company’s own creditors.
Henderson J
[2016] EWHC 617 (Ch)
Bailii
England and Wales
Insolvency, Financial Services
Updated: 12 January 2022; Ref: scu.561523
