NEW YORK (Reuters) - Lehman Brothers Holdings Inc LEHMQ.PK said it will drop its appeal of a bankruptcy court’s ruling upholding Barclays Plc’s (BARC.L) purchase of its North American business in 2008.
In a statement, Lehman said on Wednesday it will drop its challenge of Judge James Peck’s February ruling denying its attempt to overturn the sale, which was completed in the hectic days following Lehman’s $639 billion bankruptcy filing. The company said pursuing the appeal would put an unnecessary strain on its estate.
Lehman had accused Barclays of securing a windfall by withholding information from the court.
Lehman also said it will not pursue an appeal of Peck’s follow-up decision earlier in September that Barclays had not improperly withheld $500 million it was supposed to pay to employees it inherited in the takeover.
The company said it disagrees with the rulings, but is “cognizant” of the burden litigation would put on the estate.
“We have determined that ... the resources of the court and the estate will be better employed at this point to move the bankruptcy toward a conclusion,” Lehman said.
A spokeswoman for Lehman declined to make any further comment. The company is negotiating with creditors in the hope of securing widespread support for a proposed $65 billion bankruptcy exit plan.
Barclays had no immediate comment.
Reporting by Nick Brown; editing by Matthew Lewis and Andre Grenon