Article/Intelligence
Lehman Brothers Europe Closes 17-Year Chapter as Court Ends Historic Administration
Administrators’ Skeleton ArgumentLehman Brothers International (Europe), or LBIE, has concluded a 17-year long administration today in the English High Court having paid all of its creditors in full and divested the majority of its assets. Justice Robert Hildyard said it was a “seminal moment,” noting that LBIE has been “right at the centre of everything.”
LBIE served as the major European trading hub for U.S. investment bank Lehman Brothers Holdings Inc. prior to its collapse in 2008.
Since being placed in what the administrators described as an “extraordinarily successful” administration on Sept. 14, 2008, LBIE has received £27.8 billion enabling the payment of all creditor claims in full together with statutory interest. As at Sept. 14 2025, LBIE was holding funds of approximately £27 million.
The wider administration of Lehman Brothers’ U.K. operations has generated around £43 billion in returns to counterparties, translating to a 100% recovery for creditors to date.
The present administration period has been extended a number of times and was due to expire on Nov. 30, 2025, following an order made on Nov. 25, 2022.
However, the administrators today told the court that the continuation of the administration would not be worthwhile or appropriate because LBIE’s only remaining function is to collect a small number of assets and make distributions to its sole shareholder LB Holdings Intermediate 2, or LBHI2.
Ultimately, Hildyard J was satisfied to bring an end to LBIE’s administration, saying that doing so would be “simpler, less unwieldy and cheaper” than the alternative scenario of keeping the entity in administration.
Other Entities Remain in Administration
During today’s hearing, Hildyard J also ordered extensions to the administration periods of three other Lehman Brothers subsidiaries Lehman Brothers Ltd. , LBHI2 and Lehman Brothers Holdings.
Lehman Brothers Ltd.’s administration has been extended by one year while it resolves a number of enquiries made by HMRC in relation to its tax liabilities. Hildyard J said he was “slightly disappointed” to know this will take a year, highlighting the costs associated with remaining in administration.
The administration period for LBHI2 Limited was also extended for one year to allow it to distribute remaining recoveries from LBIE to its subordinated debt holder, Lehman Brothers Holdings.
Accordingly, Lehman Brothers Holdings’ administration period was granted a two-year extension to allow for the conclusion of LBHI2’s administration.
It is expected that these extensions will be the final administration extensions sought in the U.K. courts, counsel said.
“Provided there are useful things necessary and capable of being done in the administration of these three companies which necessitate an extension of time, I am satisfied that that is the most appropriate course to take,” Hildyard J said.
The administrators were represented by Ryan Perkins of South Square, instructed by Linklaters.
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