5th Jun 2015 15:11
LONDON (Alliance News) - Barclays PLC Friday said it has reached a settlement over litigation relating to assets previously owned by failed investment bank Lehman Brothers Inc, meaning the British lender is set to receive the vast bulk of the assets under dispute and recognise a USD750 million pretax gain this year.
Barclays said it expects it will be able to recognise the pretax gain in results for the first six months of 2015, which are to be reported on July 29, if the settlement is approved by the Bankruptcy Court.
In a statement, Barclays said it had reached a settlement with the SIPA Trustee for Lehman Brothers, which is being liquidated under the Securities Investor Act of 1970.
The assets in question were acquired by Barclays in September 2008 just days after Lehman Brothers filed for bankruptcy.
Barclays said it will receive all but USD80 million of the USD1.1 billion of assets which were under dispute by the trustee.
"Following implementation of the settlement, Barclays will have received all of the assets it claimed in the litigation with the exception of this USD80 million and approximately USD255 million of margin for exchange-traded derivatives (exclusive of interest) still owing but expected from third parties," Barclays said.
Barclays shares were down 0.1% at 266.15 pence on Friday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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