Lehman Bros Australia Ltd (In Liq) v Lehman Bros Special Financing Inc

The matter before the Court is an application by the liquidators of Lehman Bros Australia Ltd (LBA) for leave to serve an originating application on Lehman Bros Special Financing Inc (LBSF), a foreign entity, in the United States. The applicants seek relief regarding the rights of LBSF in respect of a collateral payment, an appeal by Gosford City Council, and proofs of debt lodged by McGraw Hill Financial Inc. and Standard & Poor’s International LLC. The Court must decide whether the liquidators have a prima facie case for the relief sought and if the proceedings are within the Court's jurisdiction.

The Court considered the extensive evidence provided by the applicants, which establishes a prima facie case for the relief sought. The evidence addresses the complex intercompany arrangements and orders made by the Bankruptcy Court in relation to the Lehman Brothers group companies. The Court found that the liquidators had a prima facie case for the relief sought, as inferences could be drawn from the material presented that would support the relief claimed. The Court also determined that the proceedings were within its jurisdiction as the subject matter concerns property in Australia and involves LBSF as the party to be served.

The Court granted leave for the applicants to serve the originating application on LBSF in the United States, along with the necessary documents and reasons for judgment. The Court also ordered that the liquidators' costs of the interlocutory application were costs properly incurred in the exercise of their duties and powers. The matter was listed for directions on 21 August 2015 at 9.30 am.

In conclusion, the Court found that the liquidators had established a prima facie case for the relief sought and that the proceedings were within the Court's jurisdiction. The Court granted leave for the applicants to serve the originating application on LBSF in the United States and ordered that the liquidators' costs were properly incurred. The matter was listed for directions on 21 August 2015 at 9.30 am.