Thursday, December 14, 2017 2:08:17 AM
https://www.kirkland.com/.../Friedland%20-%20An%20Overview%20of%20the%20Automatic%20Stay.pdf - Cached - Similar
Section 362(b) of the Bankruptcy Code lists exceptions to the automatic stay.
These exceptions reflect policy decisions made by. Congress that the rights of
certain parties should take precedence over the debtor's need for breathing room
. The most commonly sought exceptions are actions by parties to securities
contracts."
https://www.kirkland.com/siteFiles/kirkexp/publications/2430/Document1/Friedland%20-%20An%20Overview%20of%20the%20Automatic%20Stay.pdf
Note: Only the outlaws wanted all the cash in the western days! Hmmm!
***
"You are missing a key component of a bankruptcy. The stay and cancellation of prior contracts (CTs prospectus)upon exit from bankruptcy. The CTs no longer have a contract with LBHI."
*** The same "Kirkland & Ellis" who desire to liquidate LBIE for Wentworth Sub-Debt’s and grab the UK surplus for LBHI's creditors!
"38 On 30 June 2017, Wentworth Sub-Debt’s legal representatives (“Kirkland & Ellis”)
wrote to the Administrators’ legal representatives (“Linklaters”) stating that
Wentworth would be amenable to discussing a settlement of the Waterfall II
proceedings involving accelerated payments of Statutory Interest subject to a
discount for that acceleration and for the risk that LBIE may enter liquidation (i.e. in
respect of the potential adverse effect of the Statutory Interest Lacuna). Kirkland &
Ellis noted in that letter that paragraph 79(2)(c) of Schedule B1 to the Act requires
the Administrators to make an application to Court for their appointment to cease if
a creditors’ decision requires them to do so, and that the holder of 10% of the total
debts of LBIE could require the Administrators to seek such a decision (by reason of
paragraph 56(1) of Schedule B1 to the Act). Kirkland & Ellis went on to state
Wentworth Sub-Debt’s apparent belief that it would be able to cause the
Administrators to make an application under paragraph 79(2)(c) of Schedule B1 to
the Act.
.
.
.
48 The first and most fundamental of these is whether the Administrators are obliged to
comply with Wentworth Sub-Debt’s purported paragraph 56(1) request in
circumstances where the Administrators consider that the request would frustrate
the achievement of the purpose of LBIE’s Administration and/or not further the proper
operation of the LBIE Administration (or the LBIE estate more generally) and that the
request would therefore not be conducive to the aim of doing justice as amongst all
parties interested in the LBIE estate.
49 The Administrators have been seeking to achieve the purpose of the Administration
with the objective of achieving a better result for LBIE’s creditors as a whole than
would be likely if LBIE were wound up without it first being in administration. The
Administrators believe that the distribution of the Surplus in payment of entitlements
to Statutory Interest on proved debts would further achieve this objective, and thatthe paragraph 56(1) request, which is designed to trigger the Statutory Interest
Lacuna, would not further the proper operation of the Administration; on the contrary,
it would run counter to it (not least where a liquidation at this stage would achieve a
worse outcome for LBIE’s creditors as a whole than concluding the distribution of the
Surplus in the Administration). The potential loss to senior creditors of £5.29 billion
of Statutory Interest entitlements, in the Administrators’ opinion, would amount to an
injustice which far outweighs any benefit to creditors which might arise from any
supposedly swifter resolution that a liquidation might be said to offer. There are other
disadvantages to putting LBIE into liquidation and, in the Administrators’ view, no
genuine advantage, and certainly none that justifies accepting the risks and
disadvantages of such a step.
50 It seems to the Administrators (and Wentworth Sub-Debt have not suggested
otherwise in their correspondence) that the only parties that might benefit from the
proposed steps are the members of the Wentworth joint venture in their capacities
as holders of the Sub-Debt and/or LBIE’s shares1. Indeed, triggering the Statutory
Interest Lacuna, in order to bring about those advantages that would benefit only
Wentworth Sub-Debt and its associated entities, appears to be the sole motivation
for the steps now being taken.
.
.
.
64.1 based on a time estimate of one day (in respect of just the first issue identified
above) in February 2018 in the normal course or in January 2018 on an
expedited basis; or
64.2 based on a time estimate of two to three days (if determining all the issues
above) in late February or March 2018.
65 As mentioned above, the Court may wish to consider dealing with the first issue in
the Application first, on an expedited basis, given that it is the most important issue
and will, if decided in the Administrators’ favour, make it unnecessary for the Court
to determine the remainder of the issues in the Application."
https://www.pwc.co.uk/business-recovery/administrations/lehman/rd15-witness-statement-sealed.pdf
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