Edited by Matthias Haentjens and Bob Wessels
Chapter 13: Lehman Brothers Treasury
This chapter deals with the insolvency of Lehman Brothers Treasury Co. B.V. (LBT), a Lehman Brothers’ financing entity established in the Netherlands. The Dutch insolvency proceedings of LBT began with an application for suspension of payments, and after the initiation of formal bankruptcy proceedings, concluded with the confirmation of a composition plan. To date this plan has resulted in 13 distributions to creditors adding up to USD 12.3 billion. The unprecedented complexity of this insolvency and the difficulties inherent to proceedings of a cross-border nature posed various challenges to the administration of LBT in general and the successful conclusion of the composition plan in particular. These challenges, such as the complicated cross-border intra-group relations between the various Lehman entities, and their resolution, which could serve as a model for international bank recovery proceedings, are described in detail.
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