PwC to administrate Lehman Brothers UK

News Article - Monday, September 15, 2008

filed under: Business

PricewaterhouseCoopers are to be administrators for the UK part of Lehman Brothers, which has filed for bankruptcy protection in the USA.

The UK arm of the investment bank was put into administration under insolvency laws after rescue talks between the bank and Barclays collapsed.

Lehman has said it will file a petition under chapter 11 of the US bankruptcy code in a move to "protect its assets and maximise value".

PwC partners Tony Lomas, Dan Schwarzmann, Mike Jervis and Steven Pearson have been appointed as joint administrators to Lehman Brothers International Europe and will oversee the company's business processes.

"Because the group managed its funding on a global basis the UK trading operation found itself unable to meet its obligations when the flow of funds dried up last night," said Mr Lomas.

"Our priority now is to work with management and trading counterparties to agree the manner in which the assets and liabilities will be handled."

An extra £5 billion has been injected into money markets by the Bank of England in response to the Lehman Brothers crisis.

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