Deutsche Bank fights for Lehman’s estate

by time news

Dhe Deutsche Bank has appealed a ruling by a UK court last year. The German financial institution is apparently hoping to get a little more out of so-called Enhanced Capital Advantaged Preferred Securities (ECAPS), a form of subordinated debt that Lehman had issued through one of its British subsidiaries. This is reported by the Bloomberg news agency, according to which the Bank Barclays and the hedge funds Farallon and CarVal are among the creditors. None of the creditors wanted to comment on the case.

The hearing in the London Court of Appeals is due to last until the end of the week. It is therefore about 500 million pounds, which should bring in the papers considered worthless after the bankruptcy. As recently as 2017, some of them were traded at 1.5 cents on the euro.

In 2008, some hedge funds and banks had secured some such papers, which have been the subject of a number of legal disputes since then. The dispute over the ECAPS is considered to be one of the last. The processing of the European Lehman part was far more successful than assumed at the time, according to Bloomberg. Creditors who took precedence over the ECAPS holders would have been completely redeemed and there would likely be money left.

Deutsche Bank versus Lehman Holding

Bankruptcy trustee PwC estimated earlier this year that between £ 280 million and £ 500 million could be distributed, including to subordinate creditors. This also caused the price of the ECAPS to rise, for which more than 20 percent of the nominal value had already been paid in mid-2020.

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