LONDON (AP) -- The administrators of the European arm of Lehman Brothers have told creditors that they may be repaid in full.
The repayment news, announced Monday, comes after settlements with other Lehman affiliates in the United States, Switzerland and Luxembourg — ending lengthy legal actions. PwC says the settlements have resulted in higher-than-expected future recoveries and a reduction in the reserve for claims.
Tony Lomas, lead administrator at PwC, says the assessment marks a significant milestone. The administrators told creditors there was a reasonable chance of full repayment in a progress report sent out on April 12.
Lehman Brothers IE had around 23 billion pounds in client assets on Sept. 15. 2008, the day its U.S. parent filed for bankruptcy protection. The bank's failure helped spark the global economic crisis.
- Lehman Brothers