Lehman Bros seeks stay of proceedings in Israel

Lehman: Israel is not an island, respect the English High Court.

Lehman Brothers International (Europe) has petitioned the Tel Aviv District Court for an urgent injunction against legal proceedings against the company in Israel. Lehman Brothers Group Inc. filed for bankruptcy in September.

Lehman Brothers International is asking the court to recognize the administrative order filed 14 weeks ago with the High Court in England as part of the insolvency proceedings. In the petition to the Tel Aviv District Court, the company said, "It is unacceptable that when the company's creditors around the world have filed equitable claims for debts as part of the insolvency procedures underway in England, Israeli creditors, or people seeking to seize the company's assets in Israel, are undertaking separate procedures in the Israeli courts, as if Israel were an island, unrelated to the developments in the world."

The company added, "The principle of reciprocity, including international norms between jurisdictions, and above all, logic and common sense demand honoring the foreign insolvency proceedings underway at the High Court in England with regard to Lehman Brothers."

Lawsuits against Lehman Brothers in Israel include a NIS 371 million claim by Bank Leumi (TASE: LUMI).

Tel Aviv District Court Judge Varda Alshech told Lehman Brothers that it must clarify its request. She added that the request for an injunction should be sent to Bank Leumi, Israel Discount Bank (TASE: DSCT), and the official receiver of Lehman Brothers Israel within 24 hours.

Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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