Hedge Funds Could Get Back $11 Billion From Bankrupt Lehman Brothers in March
November 25, 2009 1:23 AM
After the bankruptcy of Lehman Brothers, $35 billion worth of investments from Hedge funds were frozen in the failed investment bank’s prime brokerage accounts. Hedge funds have lobbied that the funds needed to be returned to avoid a collapse of their own.
An earlier attempt to get the funds unfrozen was turned down by the British Courts because of fears that the sheer volume of trades from the hedge funds would be able to influence the market through Panic selling.
The current administrator of the bankrupt Lehman Brothers, PricewaterhouseCoopers, has put forth plans to recover up to $11 billion of the assets. However, the majority of the clients, around 90%, need to agree on the proposed plan before the December 2 deadline. If the clients agree to the plan, they can file claims until the end of February with assets being returned in March.
