Deutsche Bank wins guarantor arguments in Lehman Brothers sub-debt appeal

Lehman Brothers’ US holding company must reduce its claim as assignee of a subordinated loan debt in a UK Lehman entity’s estate by what it had already paid to the original creditor as the debt’s guarantor, the English Court of Appeal has ruled, overturning parts of a landmark decision that a British court made last year on the distribution of subordinated liabilities between Lehman entities.