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Lehman creditors offered faster cash 16 June 2010

The plan, called the “consensual approach” could see PwC making billions of cash payouts by the end of this year and 2011. 

It was originally predicted to take years into the future to pay off the 6,300 unsecured creditors of the bank.

However in exchange for fast-track payouts, the proposals require creditors in exchange to lower their expectations of how much they think their claims are worth. 

PricewaterhouseCoopers will now consult with those creditors to determine whether enough of them support the proposal.

Creditor meetings will be held in London and New York City later in the summer, and creditors are expected to vote on the proposal in the last quarter of the year.

If a majority doesn't support the plan, the traditional bilateral approach will be used to distribute the assets. Under this approach, each creditor would submit a claim, which the auditor would then examine and decide.

Steve Pearson, a partner at PricewaterhouseCoopers said that the new proposal will only go ahead if it gains an “overwhelming majority” of support from creditors. 

The proposal comes eighteen months after Wall Street firm Lehman Brothers collapsed in the largest corporate failure in history

In December, clients of Lehman Brothers voted in favor of a plan to speed up the return of about $11bn in frozen client assets.

Read PricewaterhouseCoopers' new proposal to creditors: http://www.pwc.co.uk/eng/issues/lehman_creditor_update_140610.html

 

 

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