Linklaters advises PwC on deal to return assets to Lehman clients

David Ereira

The magic circle firm has advised administrators PwC on a claim resolution agreement (CRA), an arrangement for the return of assets to clients, which is now unconditional after receiving the support of 90 per cent of Lehman’s former clients.

A multi-disciplinary team led by banking partner David Ereira worked on the CRA, under which PwC expects to return more than $11bn (£6.9bn) worth of assets. The team also featured capital markets partners Michael Voisin and Pauline Ashall, financial regulation partner Stephen Fletcher, tax partner Mark Kingstone and litigation partner Nick Porter.

Ereira, who was part of the hastily assembled team that acted for PwC in the immediate aftermath of Lehmans’ collapse, described the transaction as “hugely innovative”.

He added: “The CRA has addressed many of the issues now being grappled with by the Government in their proposed reforms in the insolvency of investment firms without the need to change the law and will result in a speedier resolution than may be achieved in other jurisdictions where other Lehman insolvencies are going on.”

The CRA will replace the originally proposed Scheme of Arrangement, which was blocked by the Court of Appeal.