Bloomberg News reports that the business hub’s developer, Canary Wharf Group Plc, is seeking a U.S. court order for Lehman’s estate to pay $780m in back rent and damages over the early departure of the investment bank’s European headquarters in March 2010.
Canary Wharf’s decision nine months later to forfeit the contract and sign a 999-year lease with JPMorgan as the new tenant didn’t exempt Lehman from its obligations, as Lehman claims, David Tulchin, the developer’s lawyer, said yesterday in a filing in U.S. Bankruptcy Court in Manhattan.
The forfeiture 'provides no basis, under English law or common sense, for Lehman to avoid its obligations to indemnify Canary Wharf for its outstanding losses', Tulchin, of Sullivan & Cromwell LLP in New York, said in the filing.
The dispute is coming to a head as creditors of Lehman and its defunct broker, Lehman Brothers Inc., fight over remaining cash.
To access the complete Bloomberg News article hit the link below: