Barclays Appealed On $4 Billion Payment To Lehman Trustee

by San Antonio Attorney

Barclays Plc appealed on a judge’s order to transfer to the trustee for Lehman’s brokerage arm approximately $4 billion in connection with the hurried buying of the North American business.

According to the court papers filed, Barclays making an appeal to U.S. Bankruptcy Judge James Peck’s ruling in February.

The ruling granted the Lehman estate around $4 billion in margin assets. A spokesman for Barclays said in June that the company would probably make an appeal. Barclays attorney Jonathan Schiller said that the judge made a mistake in his ruling.

Schiller said that Barclays was specifically assured particular assets, and counted on getting them when reaching the conclusion to proceed with the historic purchase.

Barclays made an argument previously that it ought to be entitled to the margin assets as it took on considerable risk when purchasing exchange-traded derivatives of Lehman during the worst days of the financial meltdown. Barclays stated that it certainly would have not taken on that risk if it were not for the derivatives margin.

In addition, Barclays appeals on Peck’s ruling that the company is not at all eligible to receive around $769 million in customer accounts of Lehman.

Giddens said the issue ought to be closed since four months have already past when the Court made its decision.

Barclays gained in certain aspects, which includes the overall ruling confirming its rushed acquisition of Lehman’s brokerage only days after it filed the biggest bankruptcy in the history of the nation.

Barclays also won in a battle with the bankruptcy trustee over who was supposed to get more than $1 billion in “clearance box” assets, funds held to expedite the securities trading clearance. A spokesman for Giddens did not confirm if the trustee will make an appeal in that aspect of the case.

Lehman Brothers Holdings Inc filed for bankruptcy protection in 2008. It declared $639 billion in assets, which is six times greater than any other bankrupt company in the U.S.

Filing for bankruptcy protection can get complicated.  If you plan on filing a San Antonio bankruptcy seek an experienced bankruptcy attorney that knows the law inside and out.

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