The Supreme Court is this week hearing an appeal that will determine which clients of Lehman Brothers’ insolvent UK subsidiary will have access to $2bn-worth of ringfenced funds.
The case centres on a pool of money held at Lehmans Brothers International Europe just before the firm went into administration in September 2008. Before entering administration, Lehmans segregated £2bnworth of client money for a number of its clients, including GLG Investments, but not for others such as CRC Credit Fund.
A December 2009 ruling stating clients whose money was not properly segregated would be treated as unsecured creditors and would therefore not get all their money was successfully overturned by CRC in June 2010.
This meant clients whose money was not properly segregated could still claim from the pool. But GLG argues only clients whose funds were properly segregated should be able to claim the funds.