Creditors should take comfort from the reports from PWC's Tony Lomas that Lehman's unsecured creditors can expect 100p in the £ return and possibly with interest - by 2014 - having had some 68p in the £ so far.
From a 2008 collapse and much press about the level of the fees of the Insolvency Professionals, this shows that the expertise and hard work applied is worth the money and that creditors should not be too hasty in writing off possible returns. This return despite the endless and important litigation we have seen from the cases.
Of course many cases show no return but the loss to creditors is as a result of the insolvency itself rather than the actions of the IP and the IP, as part of his function, has to operate the orderly liquidation following the insolvency event. Frequently he has to risk his own money to pursue a recovery for creditors who will not fund litigation or take risk.
This is also true of much smaller cases where creditors can be disheartened by pre-pack sales and lengthy investigations. Cases do take time and creditors cannot always be fully apprised of investigations going on until well into litigation.
However, even in the largest failure, sometimes sunshine breaks through eventually.
Frances Coulson (firstname.lastname@example.org)
This post is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained in this post. Should you wish to instruct us on any detailed matter, please contact Frances Coulson.