Lehman Bros UK staff 'will be paid'
Lehman Bros UK staff 'will be paid'
Wednesday 17th September 2008
UK workers at Lehman Brothers will have their wages paid – at least until the end of September, administrators confirmed today.Administrators at PricewaterhouseCoopers on Monday admitted it was not certain if staff would be paid – despite being called on to assist with the break-up of the firm – with the next salaries to be paid on Friday.
However, PWC has confirmed wages will now be paid for the last month by September 30th.
A loan has been organised to cover the £42 million wage bill.
Tony Lomas at PWC said: "When we arrived there were not any funds here, so staff were concerned they were not going to be paid their September salaries.
"We have successfully concluded negotiations on raising funds.
"We have arranged a loan from Carvel, a global financial institution which has enabled us now to give the undertaking to staff that before the end of the month we will be paying all staff here - and there are 4,500 of them - so long as of course they are turning up to work in order to help in our efforts."
It was uncertain whether wages would be paid as Lehman Brothers operated a treasury system whereby all cash returned to New York at the end of a working day.
When Lehman Brothers filed for bankruptcy in the US, funds heading back each day to subsidiaries in Europe dried up.
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