Following my recent blog entry on the Bank of England's letter to the Insolvency Service, regarding the administration procedure, I can now add a link to Mr Justice Blackburne's judgment in Re Lehman Brothers International (Europe) (No 2),  EWHC 2141 (Ch) (21 August 2009). The case concerned an application, "brought both by way of ordinary application pursuant to paragraphs 63 and 68(2) of schedule B1 to the Insolvency Act 1986 and by way of a Part 8 claim form, is by the administrators of Lehman Brothers International (Europe). Its purpose is to establish whether a scheme of arrangement under Part 26 of the Companies Act 2006 ("the 2006 Act") which the administrators wish to promote between LBIE and certain scheme creditors is one which the court has jurisdiction to sanction. If there is jurisdiction then the administrators seek a direction that they be at liberty to apply to the court for directions with a view to convening meetings of scheme creditors under section 896 of the 2006 Act."
Professor Walters has also commented on the Bank of England letter. He notes:
"I'm not sure a large, unusual and admittedly complex case like Lehman should be used as a vehicle for changing rules that work tolerably well in the majority of cases. As a matter of first principle - equitable rules on the administration of a fund, Berkeley Applegate and, dare I say, the oft maligned HL decision in Buchler v Talbot - the costs of the administration ought to be borne by those who benefit and the argument of the hedge funds (as reported here) appears to be entirely unmeritorious."
I have to say that I do concur with this statement by Professor Walters. Any other views out there on the letter? Here is the Guardian article again for your reference: