Lehman Brothers staff to be paid as PwC finds cash but jobs still under threat

Thousands of Lehman Brothers’ staff who have continued working since the bank went bust will get paid this month, according to the firm’s administrators

PricewaterhouseCoopers (PwC) said about 4,500 employees will be paid their salary for the previous month by 30 September.

It had been uncertain whether staff would receive the estimated £40m owed to them in wages.

Speaking on a special webcast, PwC partner Tony Lomas said: “One very important point – when we arrived there were no funds here. Staff were concerned that they weren’t going to be paid their September salaries. And we were concerned we wouldn’t be able to make various other payments necessary to continue.

“We have succesfully concluded negotiations on raising funds… we’ve arranged a loan which has enabled us to give an undertaking to staff that before the end of the month we will pay all 4,500 staff, as long as [they] turn up to work to help in our efforts to take this forward.”

Staff expenses are also expected to be paid, but no decision has been taken by PwC yet on bonuses. According to reports, only about a dozen staff have been made redundant, but hundreds more are expected to be axed at the end of the month.

A £1bn offer by Barclays to buy parts of Lehman Brothers received a cautious welcome from the City.




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