Lehman's European Unit Seeks $8 Billion To Pay Creditors, Salaries

September 21, 2008 5:34 p.m. EST

London, UK (AHN) - The European segment of the collapsed investment bank, Lehman Brothers Holdings Inc., is seeking $8 billion from the parent company, the officials said.

Last week, Lehman Brothers officially filed the biggest bankruptcy protection in history and listed more than $613 billion of debt after it collapsed, which is larger than WorldCom Inc.'s failure in 2002 and Drexel Burnham Lambert's in 1990.

In its filing, Lehman Brothers also said it will look for potential buyers for its broker and investment-management units and it will explore other strategic alternatives.

Tony Lomas, administrator at London-based PricewaterhouseCoopers (PWC) for Lehman Brothers International (Europe), said the court order in New York is aimed to receive funds to pay salaries, creditors and other expenses in Europe.

The European unit said that it has received offers to purchase the investment bank's London-based segment and other portions of the unit.

Barclays PLC is currently in talks with the New York-based Lehman Brothers' to purchase its investment banking business for as much as $1.75 billion.

Lehman's Japanese investment banking business and parts of the equity trading arm may be purchased by the Tokyo-based Sumitomo Mitsui Financial Group Inc.