GLG Partners Inc continues to believe that the overall exposure of the GLG Funds and its other clients’ exposure to Lehman Brothers Holdings Inc (‘LBHI’) and its subsidiaries, including Lehman Brot
GLG Partners Inc continues to believe that the overall exposure of the GLG Funds and its other clients’ exposure to Lehman Brothers Holdings Inc (‘LBHI’) and its subsidiaries, including Lehman Brothers International Europe (‘LBIE’), will not be material.
In an update released yesterday, GLG states it ‘also continues to work to achieve a return of the remainder of its client’s and the GLG Funds’ capital that is exposed to LBIE as well as a settlement of pending transactions with LBIE. Although some progress was made last week with regard to outstanding options and futures positions, in light of the ongoing LBIE receivership and recent announcements by PricewaterhouseCoopers, (‘PwC’) as administrators of LBIE, GLG cannot predict when amounts exposed to LBIE will be released and when pending transactions will be settled.’
GLG has been in regular contact with its regulators and other authorities in the UK regarding this matter, and has also made strong representations to PwC to quickly identify client segregated assets and to agree a plan to settle pending transactions.
GLG also confirms that it lodged a formal objection to the sale of Lehman Brothers’ U.S. broker-dealer assets to Barclays on Friday in the United States Bankruptcy Court, Southern District of New York.
While GLG does not in principle oppose the sale of Lehmans’ broker-dealer assets held by LBHI to Barclays, the motion was filed in support of that lodged by PwC to ensure that the rights of LBIE, its administrators and LBIE’s creditors to recover the full amount of cash that may have been improperly taken by LBHI from LBIE are fully preserved.
