24/09/2008

GLG tries to reassure investors

GLG, the $24bn hedge fund that used Lehman Brothers as a prime broker, has no estimate for when assets frozen in the bankruptcy will be returned.

In a statement GLG tried to reassure worried investors, it claimed that the overall exposure of its funds and its other clients will not be material. It promised to continue working to achieve a return of the remainder of its clients' and the GLG Funds’ capital that is exposed to Lehman Brothers Investment Europe (LBIE) as well as a settlement of pending transactions with LBIE.

GLG also confirms that it lodged a formal objection to the sale of Lehman Brothers’ US broker-dealer assets to Barclays on Friday in the United States Bankruptcy Court. While GLG does not in principle oppose the sale of Lehmans’ broker-dealer assets held by Lehman Brother Holdings Inc (LBHI) to Barclays, the motion was filed in support of that lodged by PwC to ensure that the rights of LBIE, its administrators and LBIE’s creditors to recover the full amount of cash that may have been improperly taken by LBHI from LBIE are fully preserved.