Deutsche Bank Poised for Big Win as Last Lehman Legal Fight Ends

One of the last issues in the bankruptcy of Lehman Brothers has been resolved, handing a potentially huge win to a clutch of distressed investors led by Deutsche Bank AG.

The UK Supreme Court refused Lehman’s US holding company permission to appeal a ruling that said holders of subordinated notes issued by the defunct investment bank should be paid before other claims. The decision effectively brings to an end years of wrangling over what’s left to pay to creditors some 14 years after its collapse.

It could lead to huge payouts for holders of little-known Enhanced Capital Advantaged Preferred ...