As PricewaterhouseCoopers, administrators for bankrupt Lehman's London-based unit, announced on Monday Lehman Brothers International, that has over $35 billion of hedge fund assets frozen since the bank's recession last September, indents to pay back about $11 billion to fund managers by March in case 90% of Lehman's clients approve the new plan.

 As it’s known, hundreds of hedge funds were left hanging last September when New York-based Lehman filed for bankruptcy. More than $35 billion of assets that they entrusted to Lehman's London unit have been frozen as part of the receivership process.

 The proposal, which is to be sent to fund managers Tuesday, would return assets to funds and close out positions without the need to post further collateral. LBIE's creditors' committee supports the plan unanimously. The LBIE Creditors' Committee is comprised by Ramius Credit Opportunities Master Fund Ltd, GLG European Long/Short Fund, Legal and General Pensions Ltd, Oceanwood Global Opportunities Master Fund and Lehman Brothers Holdings Inc.

 Companies are to vote on the plan until December 29. Claims filing is to be completed by the end of February, that will let assets to be returned by the end of March.

 PwC is anxious that without a court-approved or client-approved plan, it would possibly take many years and even a decade before claims can be reviewed and assets returned to their owners.

 So far $13.3 billion of assets have already been paid back, while $11.4 billion of securities and cash have been recovered from various third parties and are available for return.

 LBIE is also trying to claim $7.2 billion of cash and assets held by Lehman Brothers affiliates in the US and Asia.