06/03/2013 - 12:11

City of Swan recovers some Lehman funds

06/03/2013 - 12:11

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City of Swan recovers some Lehman funds

The City of Swan has recovered some of the funds invested in collapsed investment bank Lehman Brothers Australia.

The City today said it received nearly $975,000 from notes relating to two collateralised debt obligations with a face value of $1 million.

Acting chief executive Jim Coten said the council was also waiting on confirmation as to whether a further $513,000 will be paid back from a third CDO.

Mr Coten said the council worked with law firm Johnson Winter Slattery to recover the funds.

“We were successful in various courts in London, all the way to the Supreme Court of the United Kingdom,” he said.

“A deadlock ensued, following a decision by Judge Peck in the New York Bankrupcy Court, and without the work of the Belmont Group of Litigants, the funds would have stayed in limbo for many years.”

Mr Coten said the City had played a leading role in a number of legal fights to recover funds from the failed investment bank.

The City of Swan was lead plaintiff in successful Federal and High Court action against Lehman Brothers Australia, challenging a deed of company arrangment that would have transferred the money to Asia.

“Because of our action, significantly more money has been, and will be retained in Australia,” Mr Coten said.

“Being able to secure these returns is very satisfying and a great boost for the City of Swan and many other Australian communities.”

 

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