ARMIDALE Dumaresq Council is another step closer to securing the money invested with Lehman Brothers after the investment bank collapsed more than five years ago
General manager Shane Burns said it was reported that settlement had been made after class action against the company, and that creditors were tipped to receive about 50 cents in the dollar.
Mr Burns said he was hopeful that $3 million would be returned by March next year, meaning the council would have recovered two thirds of its investment.
The council already secured $3.1 million earlier this year from trust bank accounts in England.
“The process still requires the agreement to be signed off by the federal court,” Mr Burns said.
The loss of money invested with Lehman Brothers has had little impact on council’s operations as the original investments were made from water and sewer funds, which have maintained a good financial position.
Mr Burns said attention would now turn to recovering the last third of the outstanding debt, with council considering participation in another no-win, no-pay class action against rating agencies.
“Should this proceed and council be successful, it would keep council’s promise to its ratepayers as to recovery of the majority of investment funds,” he said.
