White water rafting down the Lehman waterfall

White water rafting down the Lehman waterfall

jibfl_june2014In this month’s Butterworths’s Journal of International Banking and Financial Law, Glen Davis QC, a barrister practising from South Square Chambers, considers the significance of David Richard J’s decision in Re Lehman Brothers International (Europe) (in administration) [2014] EWHC 704 (Ch) – better known as the ‘Lehman Waterfall application’.

Glen Davis QC looks at five key issues in the case:

  • whether subordinated debt ranks below statutory interest in the order of priority for distribution of assets on an insolvency
  • whether claims for currency conversion losses can be advanced as non-provable claims against a company which has paid provable claims in full and statutory interest
  • whether interest for the period of administration of Lehman Brothers International (Europe) (LBIE) would be provable in a subsequent liquidation
  • issues arising from LBIE being an unlimited company, and
  • whether mandatory insolvency set-off applies when a company proves in the insolvency of its members in respect of their liability as contributories

For the full article, click here [PDF].

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