The London arm of Lehman Brothers has finally been allowed to close – just over 17 years since the bank’s dramatic collapse triggered the last financial crisis.
The unit has been in administration since the demise of its 158-year-old Wall Street parent in September 2008.
But a London judge has ruled that Lehman Brothers International Europe has satisfied all its creditors, mostly paid in full with interest of 8 per cent.
Judge Robert Hildyard called this a ‘seminal moment’ yesterday.
‘The Lehman case is so unusual that [it] is unlikely to ever be repeated,’ he said.
Insolvency practitioners at PricewaterhouseCoopers recovered almost £28billion and has been paid £1billion for its work.
Flashpoint: A Lehman Brothers employee carries his possessions out of the office in a cardboard box following the bank’s collapse in 2008
Ryan Perkins, a lawyer for Lehman, told the court that administrators now ‘have nothing left to do’, according to the reports.
‘It’s quite a unique situation for a company in administration to have surplus assets,’ he added.
Once the fourth-biggest investment bank in the US, its failure was one of the largest bankruptcies in history.
The fall triggered a brutal global recession and its 26,000 workers lost their jobs.
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