BLAYNEY Shire Council has welcomed the outcome of a landmark class action against collapsed investment bank Lehman Brothers while Cabonne Council remains tight-lipped about its claim of nearly $1 million.
In July 2009 Cabonne and Blayney councils lodged the claim with more than 71 plaintiffs seeking a combined $260 million from the liquidator of the Australian arm of the bank previously called Grange Securities.
“Cabonne Council would prefer not to make any statement about the case until the final orders are issued and the outcome of any possible appeal by the liquidators is known.” A Cabonne Council spokesperson said.
The spokesperson said final orders in the Lehman Brothers compensation case are not likely to made until November 5 and the liquidators have 28 days from the date of the final orders to lodge an appeal.
Blayney Shire Council hopes to recover $500,000 lost in the global financial crisis. Blayney council invested in two Lehman packages each valued at $500,000.
The first investment was paid out at the full principal value when it reached maturity last year, the second $500,000 investment, which will reach maturity in March 2014, hangs in the balance as the legal proceedings continue.
Cabonne initially claimed $949,555 while Blayney claimed $825,700 September 22, 2009.