KDB to withhold Lehman details from liquidators
KOREA Development Bank (KDB) has told the liquidators of Lehman Brothers that it will not disclose all information surrounding a potential rescue by the South Korean business, mooted prior to the US investment bank’s collapse.
KDB was in negotiations with Lehman over a $6bn (£3.7bn) investment in the bank last year, but backed away from the deal just days before the US bank filed for Chapter 11 bankruptcy on 15 September.
US liquidators, led by Alvarez & Marsal, subpoenaed KDB and its financial adviser Perella Weinberg to obtain data on the discussions, but KDB has said that it is only prepared to hand over limited information.
KDB was one of a host of banks including Barclays, Bank of America and HSBC to be sounded out by US authorities about a possible rescue of Lehman, whose collapse sent shockwaves around the financial system.