Lehman Brothers Europe files $15.1 billion objection to determination

By Caroline Salls

Pittsburgh, Nov. 2 - Lehman Brothers International Europe has filed an objection valued at $15.1 billion in connection with the revised determination on its customer omnibus claim against Lehman Brothers, Inc., according to a news release.

Lehman Brothers International Europe said the $15.1 billion value of its objection includes $4 billion in overclaims.

The company said a significant amount of progress has been made to complete the substantive reconciliation exercise. The exercise was necessitated by trading activity arising in the week immediately before the SIPA trustee was appointed in September 2008.

However, Lehman Brothers International Europe said several important matters have emerged, which form the basis of the objection. These issues include

• A disagreement on the manner in which Lehman Brothers Inc.'s books and records have been updated to reflect settlement activity that took place after Lehman Brothers International Europe's insolvency on Sept. 19, 2008;

• The treatment in the books and records of items and deductions that have been made against the omnibus claim;

• The conditionality placed over aspects that dramatically reduces the value in the revised determination and impedes overall resolution of the process; and

• A dispute over time barring of elements of the omnibus claim.

According to the release, Lehman Brothers International Europe remains fully committed to continue its discussions with Lehman Brothers Inc. following the filing of the objection.

New York-based Lehman Brothers Holdings was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-13555.

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