Hewlett Packard has dropped its attempt to remove the manager of Mike Lynch’s estate, agreeing that Jeremy Sandelson can continue in the role as the late entrepreneur’s family awaits a decision on whether it can appeal against a £920 million damages award.
Under the agreement reached between the parties, Sandelson will remain in place if permission to appeal is granted. The restructuring firm Interpath Advisory will take over if the application fails.
HP had sought earlier this year to oust Sandelson, a former partner at Lynch’s law firm, and replace him with Interpath, against the wishes of the family.
At a court hearing in April, HP’s lawyers argued that Sandelson had a “fundamental and irreconcilable” conflict of interest arising from his close ties to the family. The company said Interpath would be more impartial.
HP told the court that whoever managed the estate would inevitably end up probing the finances of Lynch’s widow, Angela Bacares, to assess whether her own assets could be used to pay what is owed. The £920 million is almost twice the value of Lynch’s entire estate, so alternative sources would be required to make up the full sum.
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