Lehman U.K. affiliates placed in administration amid lack of financial support; CFO resigns

By Caroline Salls

Pittsburgh, Sept. 26 - Lehman Brothers Holdings Inc. said some of its U.K. affiliates have been placed in administration because they are not likely to be able to continue to pay their debt without Lehman's ongoing financial support, according to an 8-K filed with the Securities and Exchange Commission.

The U.K. affiliates include Lehman Brothers International (Europe), Lehman Brothers Holdings plc, Lehman Brothers Ltd. and LB UK RE Holdings Ltd.

In addition, Lehman Brothers Holdings said chief financial officer, controller and co-chief administrative officer Ian T. Lowitt resigned, effective Sept. 22.

Lowitt was Lehman's principal financial officer and principal accounting officer, according to the 8-K.

Also, Lehman said Nomura Holdings, Inc. entered into an agreement on Monday to purchase assets related to the Asia Pacific investment banking business of some of Lehman's subsidiaries.

According to the 8-K, the transaction includes Lehman's franchises and about 3,000 employees in multiple locations in the Asia-Pacific region but does not include trading assets or trading liabilities of Lehman.

Lehman said Nomura also announced on Tuesday that it had entered into an agreement to buy some assets related to the European and Middle Eastern equities and investment banking operations of some of Lehman's subsidiaries.

Under this agreement, Lehman said Nomura expects to retain a significant proportion of the roughly 2,500 employees of Lehman's equities and investment banking businesses in Europe and the Middle East.

This sale also does not include trading assets or trading liabilities of Lehman, and is subject to a number of conditions, including regulatory approvals.

New York-based Lehman Brothers Holdings is the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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