Lehman Brothers Holdings Inc. owes its London landlord Canary Wharf Group Plc $4.3 billion in rent and charges, according to Bloomberg on Thursday.
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Under its lease agreement, Lehman must pay $2.6 billion for future rent and $1.65 billion in taxes, maintenance, insurance, services and wear and tear, according to a Sept. 17 claim filed with administrator Epiq Bankruptcy Solutions LLC. The document doesn’t specify the period covered.
Lehman, Canary Wharf Group’s largest tenant, occupied more than 1 million square feet (93,000 square meters) of office space at 20-25 Bank Street in 2003 on a 30-year lease. The London property developer’s Heron Quays units filed the biggest single claim among more than 16,000 creditors against the bank, which failed in September 2008, before the Sept. 22 court-imposed deadline.
John Garwood, company secretary of Songbird Estates Plc, which controls Canary Wharf with a 61 percent stake, declined to comment. Songbird is buying 56 million shares from Commerzbank AG for 112.5 million pounds to lift its stake to 69 percent. Songbird said it will raise 895 million pounds in a share sale to pay off a loan from Citigroup Inc. and fund projects.
Morgan Stanley, the sixth-biggest U.S. bank by assets after converting from a securities firm, is a tenant at Canary Wharf as well as a part owner of the East London office park. Morgan Stanley has a 12 percent stake in Songbird. Other shareholders include Qatar Holding LLC, China Investment Corp., British Land Co. and New York investor Simon Glick.
Lehman creditors worldwide might file more than $1 trillion in claims and will probably have trouble validating them, said Harvey Miller, the bank’s lead bankruptcy lawyer.
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