Lehman's FSD bid in court
A raft of Lehmans subsidiaries move to stop the Pensions Regulator and the defunct bank's scheme's trustees from suing them in a Court of Chancery action in March.
The regulator issued six companies with Financial Support Directions (FSDs) in September 2010, which paid £150m each into the scheme.
But its independent Determinations Panel, responsible for the decision, originally dismissed the watchdog’s bid to issue directions to 36 further Lehmans sub companies.
Trustees of the scheme and the regulator appealed this to the Court of Chancery’s Upper Tribunal in October, where the judge initially suspended the action pending the outcome of a High Court dispute between Lehman’s administrators Ernst & Young – on behalf of those subsidiaries found liable – and the regulator over the FSD.
But remaining companies were unwilling to wait for the process which would almost certainly drag out for several years, with an appeal to the Supreme Court by the loosing side likely.
The companies have asked the judge to “strike-out” the trustees claim altogether, ending the companies’ involvement with the scheme.
The case will be heard from March 12.
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