A US bankruptcy court has approved a settlement between Canary Wharf Group and Lehman Brothers regarding rent losses and damages caused by the failed bank’s premature exit from 25 Bank Street, Canary Wharf, E14.
The settlement, which ends a case originally filed in 2009, will allow CWG to claim $32.5m from Lehmans. The court has ruled that Lehmans must pay 18.6% of CWG’s original claim of $350m, which CWG will split 50:50 with JP Morgan.
CWG allowed JP Morgan to lease office space at 25 Bank Street when Lehman left the building in 2010 following its bankruptcy, but at a much lower rent than that paid by Lehman.
CWG argued that its decision to sign the 999-year lease to JP Morgan did not release Lehman from its obligations.
