11 August 2010
Lehman Brothers International Europe (LBIE), a subsidiary of New York-based Lehman Brothers Holdings, has filed a lawsuit against a key Dubai Holding unit in London over the value of swap transactions, court papers showed.

PricewaterhouseCoopers, LBIE's administrators, said the case against Dubai Holding Commercial Operations Group (DHCOG) is "a straightforward financial dispute regarding the valuation of certain swap transactions entered into between the parties".

Lehman Brothers had more than 900,000 derivative contracts outstanding when it filed bankruptcy in 2008 listing $613 billion in debt, Bloomberg reported on Wednesday.

DHCOG posted a full-year loss of Dh22.8bn ($6.2bn) on June 1, compared with a year- earlier profit of Dh10bn after property prices fell. The company last month got a two-month extension on its $555 million credit line that was about to mature.

By Staff

© Emirates 24|7 2010