Lehman Brothers Holdings Inc. (LEHMQ) Bankrupt sued the Citigroup Inc.’s Citibank for the 2.5 billion dollars it claim over it that the bank withdraw the money wrongfully after Lehman transfer it in the months before its bankruptcy in 2008.
According to the filing of court on 7th of Feb Lehman is also pursuing hundreds of million which are owned by the Citibank, and now Lehman want s to deny the 2 billion of dollars of the claim which filed Citibank against Lehman.
Lehman is seeking a liquidation plan that would pay 18 cents on the dollar, to the creditors, and Lehman said that the amount of 2 billion Dollars has gathered so far to pay the creditors was the promise from the Citigroup. Furthermore to trying to free up cash, it is looking for to cut the claims of bank on its assets escalating the amount available for the other creditors.
A Spokesperson for New-York based Citigroup, Mr. Danielle Romero- Apsilos, stated that this attempt by Lehman was an unfair attempt just for the purpose that they can declare the Citi, defaulter and Lehman can claw back its assets from Citi on which he is having no right. He further said that the Bank will fight the lawsuit.
According to Lehman, Citibank has stated that it’s entitled to 2 billion dollars of the obsolete cash of firm, to secure its claim on Lehman, which will be unsecured on the other way.
Lehman also said in the Lawsuit that the so called set off is in the violation of the code of Bankruptcy.
