Lehman Europe takes Dubai Holding unit to court
Dubai, August 11, 2010
Lehman Brothers' European unit has filed a lawsuit against Dubai Holding Commercial Operations Group (DHCOG) in a dispute over swap transactions, according to PricewaterhouseCoopers.
'LBIE (Lehman Brothers International Europe) issued proceedings against Dubai Holding on 9 August 2010 in the High Court,' PricewaterhouseCoopers, Lehman's European administrator, said in a statement.
'This is a straightforward financial dispute regarding the valuation of certain swap transactions entered into between the parties,' it said on Wednesday.
A DHCOG spokesman confirmed the dispute and said in an e-mailed statement: 'DHCOG disputes LBIE's claim, the value of which is $24 million, and intends to vigorously defend the case.'
'DHCOG confirms that it is in a dispute with... LBIE regarding the close-out value of certain swap transactions that have been terminated,' he added.
The company is part of the personal business empire of Dubai's ruler and includes hospitality and property units. The unit reported a loss of $6.2 billion for 2009 and delayed repayment of a $555 million loan in July. - Reuters