Thursday, October 09, 2008

Lehman Brothers may not get paid by Polish government

The contract between the Polish government with Lehman Brothers concerning advisory services in its dispute with Eureko over PZU is slowly coming to an end

"Lehman proposed a resolution to the dispute before it announced its financial problems. The proposal however was not approved by the Treasury Ministry," said a person close to the dispute.

Ministry spokesperson Maciej Wiewior was not willing to comment on the situation, as the Treasury is waiting for information on who will take over the European part of the American bank which is currently administered by Pricewaterhouse Coopers.

"Further actions are conditioned with what happens to Lehman Brothers in London, as the Poland government has a contract with this branch," said the spokesperson.

"Our objective is a compromise which will represent our rights purchased from the Treasury Ministry. Our investment in PZU is still strategic and long-term," said Michal Nastula, president of Eureko Polska.
If it is hard to understand this article, it is because the writer is speaking in Polish.