WINGECARRIBEE Shire Council will have to apply to administrators of Lehman Brothers Australia for money owed by the failed investment banking group, according to legal firm Clayton Utz.
A year after Lehman Brothers ventured into Australia by buying Grange Securities for $120 million, the Australian arm went into administration on Friday, owing creditors $800 million.
Japanese securities dealer Nomura will take over Lehman Brothers Australia core business and most of staff after buying Lehman’s Asia-Pacific assets.
The company’s other assets are likely to be sold to pay creditors, mainly Lehman Brothers branches in the Asia-Pacific Region.
Wingecarribee Council is taking Federal Court Action against Lehman Brothers, alleging that as its former financial advisor, the company engaged in “false, misleading or deceptive conduct” in investing $29.8 million of council’s reserves in collateralised debt obligations (CDOs).
For the full story see the Southern Highland News, Monday, September 29
Email a friend