Barclays, GLG Partners, Abu Dhabi Among Lehman Claimants


Date: Thursday, September 24, 2009
Author: Karen Brettell, Reuters.com

The list of investors filing billion dollar claims against Lehman Brothers illustrates the global damage caused by its collapse, with companies from the United States, Europe and Abu Dhabi making some of the largest demands.

Barclays Bank, Morgan Stanley, GLG Partners, The Abu Dhabi Investment Authority and the Reserve Primary Fund are among the companies that took the largest losses from debt and derivatives held with Lehman Brothers, according to claims.

Lehman's investors and trading counterparties faced a deadline on Tuesday [Sept. 22] to file claims after the bank collapsed in the biggest bankruptcy in U.S. history a year ago. Not all claims have yet been posted on the website by Epiq Systems, the claims administrator.

Of the large banks, Barclays is seeking $1.34 billion from Lehman's estate relating to losses from derivatives, guarantees and debt holdings.

Counterparties to derivative contracts with Lehman are claiming on trades on which they are owed money, after accounting for collateral.

Morgan Stanley has filed claims for $1.36 billion relating to derivatives, while French bank BNP Paribas is seeking $896 million, relating to various debt, derivatives and guarantees.

Nomura Holdings has filed claims totaling $964 million from derivatives, while Société Générale is seeking $678 million from derivatives and guarantees. Bank of Scotland, part of Lloyds Banking Group and UBS are seeking payments on derivatives of $465 million and $460 million, respectively.

Hedge funds have also posted claims that in some cases include the loss of collateral they had posted with Lehman to back derivatives and other trades. Many investors were unable to retrieve these assets because they were reused by Lehman in its other operations, and have become mired in the bank's bankruptcy proceedings.

London-based fund manager GLG Partners has filed claims for more than $1.5 billion relating to four of its funds, and is claiming the loss of assets from prime brokerage, repurchase agreements and derivatives accounts it held with Lehman.

New York-based Harbinger Capital Partners has also filed a claim for $272 million relating to the loss of collateral.

Debt Claims

A number of investors have also filed claims relating to losses from Lehman debt holdings, according to filings.

The Abu Dhabi Investment Authority is seeking payments from $610 million it held in commercial paper purchased in the weeks before Lehman's failure. The debt, which yielded around 2.9%, was due to mature in the two weeks after Lehman's bankruptcy. Prominent money-market fund the Reserve Primary Fund has also filed a $785 million claim relating to Lehman's debt.

A year ago, the $62 billion fund, which is being liquidated, suffered heavy investment losses and "broke the buck" upon Lehman's collapse.

The Association of German Banks has also filed a $26 billion claim against Lehman's estate, relating to guarantees its member banks made for Lehman's German banking unit.

Wilmington Trust Company, which is trustee of Lehman's senior bonds, said in a claim that debt holders many be owed as much as $73 billion from the bank's estate.

By Karen Brettell