Barclay’s to face trial
(14 April 2010 – USA) Barclays will face a trial over questions raised by creditors about an alleged US$11 billion (A$11.89 billion) ‘windfall’ resulting from its acquisition of Lehman Brothers’ assets.
Barclay’s walked away from discussions aimed at saving Lehman Brothers in September 2008, only to then buy Lehman Brothers’ investment banking and capital markets businesses, two data centres and its New York headquarters.
The failed investment bank’s creditors have since questioned the deal, claiming that the sale contract delivered an US$11 billion gain to Barclays in connection with Lehman Brothers’ US brokerage business.
The benefit to Barclays could have been concealed or resulted from errors arising from a rushed transaction.
Last week, the bankruptcy judge who approved the deal ordered that the case brought by the creditors should go ahead, with opening arguments to begin on 26th April.
The failed investment bank’s creditors have since questioned the deal, claiming that the sale contract delivered an US$11 billion gain to Barclays in connection with Lehman Brothers’ US brokerage business.
The benefit to Barclays could have been concealed or resulted from errors arising from a rushed transaction.
Last week, the bankruptcy judge who approved the deal ordered that the case brought by the creditors should go ahead, with opening arguments to begin on 26th April.
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