KPMG International, currently the liquidator of Lehman Brothers, has announced that it has disposed of seven out of nine of Lehman Brothers’ property-related loans and bonds in mainland China for more than $200 million, achieving an 80% recovery rate.
That, in liquidation terms, is a staggeringly high recovery rate.
Michael Lindsay, the KPMG partner in charge of the disposals said six of the resolved seven Chinese property loans are related to deals in Shanghai. He also said that KPMG is also liquidating eight Lehman entities in Hong Kong.
Alibaba.com reports that in February 2007, Capital Strategic Investment teamed up with Lehman Brothers to acquire a commercial property project for RMB 450 million in Sichuan North Road, Shanghai. Earlier, on July 4, 2004, Yongye Group announced that Lehman Brothers and Morgan Stanley had each purchased a 25% stake in a residential property project owned by Yongye Group.
No one has yet said whether Lehman Brothers (in liquidation with receivers appointed) will sell its stakes in these two projects.
Note that on September 17 last year the Industrial and Commercial Bank of China (ICBC) said both its mainland and overseas branches held a total of $151.8 million in bonds of or related to Lehman Brothers.