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Barclays refutes Lehman claim on sale of brokerage unit

Tue Jun 9, 2009 11:42pm IST
 
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June 9 (Reuters) - Barclays Plc (BARC.L: Quote, Profile, Research) refuted a motion filed by bankrupt Lehman Brothers Holdings Inc (LEHMQ.PK: Quote, Profile, Research) that claimed it was inadequately compensated by Barclays for its brokerage unit, court filings showed.

In an objection filed on Friday, Barclays said Lehman's motion amounted to a wholesale attack on the bankruptcy court order, which approved the sale.

Lehman sold its North American broker-dealer business, its New York headquarters and other property to U.K.-based Barclays for $1.75 billion last September, a few days after it filed for bankruptcy protection.

Barclays said Lehman's estate already had access to any information it needed and a discovery process could not benefit the estate as the claims had no merit.

In May, Lehman said it had become aware of discrepancies which "may have resulted in a windfall to Barclays at the expense of the estate" in an amount that could reach into "billions of dollars."

The case is In re: Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555. (Reporting by Santosh Nadgir in Bangalore; Editing by Deepak Kannan)

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