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PwC reports £563m in earnings from Lehmans collapse 15 October 2012

Accountancy firm PricewaterhouseCoopers (PwC) has earned £563m from the administration of the UK arm of collapsed bank Lehman Brothers.

PwC revealed that in the six months to 30 June 2012, time costs of £77.9m were accrued, totalling 241,083 hours at an average hourly rate of £324.

Cumulative time costs accrued to the end of June this year totalled £548m, while total remuneration and disbursements paid to 14 September 2012 were £563m.

Meanwhile, the administrators continue to work on the largest corporate failure in history.

The accountancy firm also reported that in July, proofs of debt totalling £17.9 billion had been received from 3,178 unsecured creditors.

The former bank’s European unit and its New York-based brokerage settled a dispute over $38 billion (£23 billion) in claims on 5 October this year.

Tony Lomas, lead administrator and partner at PwC, said: “While we have already successfully returned more than £13.5 billion of securities and cash to LBIE clients from segregated accounts over the past four years, there have been huge obstacles preventing us from making a first distribution from the general estate to unsecured creditors.

“Through the combined efforts of the remaining 500 Lehman employees and a team of PwC specialists, we have reached a point where we can begin to return the general estate funds to unsecured creditors.”

PwC was appointed to wind down the business on 15 September 2008.

Lomas added: “We expect the next significant milestone to be the payment of a first distribution from the separate client money pool in the first half of 2013, followed by the recovery of circa $8 billion (£4.9 billion) of segregated securities and cash from LBI, for repatriation to clients.”

 

 

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