NASDAQ – Paul Singer’s hedge fund Elliott Management has agreed to pay GBP650 million($1.05 billion) to the corporate parent of Lehman Brothers International (Europe), the U.K arm of the collapsed investment bank, in exchange for the parent company’s multibillion dollar claim against its subsidiary.
The trade, which calls for the hedge-fund manager to receive the parent company’s roughly GBP1.25 billion ($2 billion) subordinated claim against Lehman Brother’s U.K. business in return for the initial payment, is the latest example of distressed debt investors hoping to profit from Lehman’s demise more than five years after its collapse.
