A US court has approved a $350m settlement between three Canary Wharf Group entities and the collapsed bank Lehman Brothers due to losses at 25 Bank Street.
The United States Bankruptcy Court for the Southern District of New York has approved the settlement of the claims filed in September 2009 against Lehman Brothers Holdings concerning losses suffered on the former Lehman Brothers, now JP Morgan Chase Bank, building at 25 Bank Street, Canary Wharf.
The settlement agreement provides that CWG’s claims will be allowed in the aggregate amount of $350m, and categorised as ‘LBHI Class 9A’.
CWG will receive about 18.57% of the allowed amount of such claims. It will also be entitled to receive any further distribution paid to the class of claimants.
Initial payments on the settlement are expected in October 2014. In December 2010, in connection with the sale of 25 Bank Street to JP Morgan, CWG agreed to pay JP Morgan 50.0% of the proceeds of any settlement.