Exhuming Lehman (and looking for Signs in the Entrails)

http://www.world-news.me/news/2013/05/14/exhuming-lehman-and-looking-for-signs-in-the-entrails/?netloc=pawelmorski_com&key=vS1qot66

No. Only LBIE customers are included on this PR. We must wait for LBI/LBHI distribution and unsecured claims treatment update.

LBI portfolio composition going to LBIE is 93% liquid assets,

"LBIE anticipates that more than 90% of the expected settlement proceeds will have been received within one month of the liquidation commencement and LBIE will provide an update once 90% has been completed"

"The timing of resolving the withholding tax treatment with the IRS may impact the timing and quantum of interim distributions to customers. We have targeted the end of June as a decision point to finalise our interim distribution plans and will provide customers with a firm update at that time."

Future Announcements

LBIE is intending to provide the following scheduled updates ahead of the first distribution

A short update once the Common Terms become effective.
Notification once 90% of the portfolio is liquidated.
A substantive update before the end of June on the timing of the interim distribution and the population expected to participate in it.

LBIE

Seventh Announcement in Respect of the Settlement of the Omnibus Claim 14/05/2013

http://www.pwc.co.uk/business-recovery/administrations/lehman/seventh-annoucement-in-respect-of-the-settlement-of-the-omnibus-claim-14052013.jhtml

First BanCorp Puerto Rico Expects $66.6M Lehman-Related Write-Down for 2Q

http://online.wsj.com/article/BT-CO-20130513-708600.html

'Zombie' Lehman Bros. craves more millions from Simmons College

http://www.bizjournals.com/boston/blog/mass_roundup/2013/05/lehman-nonprofit-swaps.html

Do you really believe that somebody is susceptible of being convinced to sell after 5 years of waiting? I don´t think so. To sell now would be stupid. But a forum is not made only for positive opinions about a subject, besides the fact that in lehman case a lot of pending issues remains unclear. Even some facts like the written word of POR had differents reading in last couple of years.

The testing period determined by IRS Section 382 is 3 years. The same period established in the Plan Trust agreement.

http://www.law.cornell.edu/uscode/text/26/382

LBHI defines the Plan Trust like a Liquidating Trust, even in Chapter 11, maybe thats why the confusion

WHEREAS, the Plan Trust is intended to qualify as a liquidating trust within the meaning of Treasury Regulation Section 301.7701-4(d);

9.1 Intention of Parties to Establish Plan Trust. This Trust Agreement is intended to create a liquidating trust for federal income tax purposes and, to the extent provided by law, shall be governed and construed in all respects as such a trust and any ambiguity herein shall be

Lehman Brokerage Trustee Says He’s Closer to Paying Customers

The trustee liquidating the Lehman Brothers Inc. brokerage said he expects to close settlement agreements with affiliates “in the near future” that should enable him to pay approved customers in full.

No one in the U.S. or U.K. has challenged the pacts struck with Lehman Brothers Holdings Inc. and Lehman Brothers International Europe, and he doesn’t anticipate a challenge by the May 22 deadline, he said in an appeals court filing in Manhattan.

It will take “some time” to set aside reserves for disputed claims before making any payout, said trustee James Giddens. He made the statements in a letter to an appeals court handling a separate dispute between the defunct brokerage and London-based Barclays Plc.

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

http://www.businessweek.com/news/2013-05-13/lehman-brokerage-trustee-says-he-s-closer-to-paying-customers

lol keep writing to explain it. Because of Im a novice investor, I appreciate that.

Agree with you.

Im not insulting anybody. I wouldn´t define the position of BNYM as friendly with CTs guarantees.imo, You were reading it in a wrong way.

I would be more conservative about the quality of my DD, specially after suggests for almost 3 months that it would be possible to have a 300B company offering shares to creditors and keep the NOLs. That was really funny.

Good hands? You seem to forget all posts. Do you remember ACDU filing?

http://www.sec.gov/Archives/edgar/data/933425/000093342510000009/acdu0330.htm


It is not speculation, it was reported to SEC.

"To verify the lack of a visible claim based on the guarantee, ACDU contacted the trustee for the Capital Trusts on March 16, 2010. On March 29, 2010, the trustee for the Capital Trusts replied that their legal counsel determined that the guarantee would only provide rights in the event a recovery is realized. ACDU vehemently disagrees with this position. The plain language of the guarantee appears to make it clear that the Capital Trust noteholders should be treated like an ordinary unsecured creditor under the guarantee eliminating the results of the so-called subordination within the contract. Two options existed to enforce rights under the guarantee. First, ACDU could file a claim based on the guarantee. But the time period for doing so expired and the Company would have needed to retain legal counsel to obtain a waiver of the deadlines for investors who bought the Capital Trust shares on the open market after the claims period expired. Second, ACDU could have made a demand on the trustee to seek assistance from the Court to extend the deadline and then submit a claim on behalf of the trust. Pursuant to the terms of the trust, any holder of a Capital Trust share can make a demand on the trustee and if the trustee refuses, they can act on behalf of their own interests."

I never saw a list, but it is clear Lehman has some hurry to sell off its assets. Mahui´s condo, Detroit´s offices and now claims against the brokerage, all in the same week. I was surprised with these claims news after reading that LBIE would recieve addtional money from the Trustee to distribute.

Lehman considering selling off some of its claims
Published: Friday, 10 May 2013 | 11:39 AM ET

NEW YORK -- Lehman Brothers Holdings Inc. said Friday that it may attempt to sell off some of the unsecured claims it has against its brokerage arm.

The news comes less than a month after a bankruptcy court judge approved a set of settlements designed to clear the way for the remnants of Lehman to repay billions in customer claims in full.

In its Friday statement, Lehman said that it hired Lazard to help it look into "monetization opportunities" related to the unsecured claims.

Lehman's bankruptcy in September of 2008 was the largest ever in U.S. history and the company's demise marked the beginning of the global financial crisis.

Lehman's individual retail customers were repaid in the first few days of the brokerage's liquidation. But it took several years of talks before Lehman Brothers Inc., its holding company Lehman Brothers Holdings Inc., and its European arm, Lehman Brothers International, could agree on how claims for larger customers of each unit, such as hedge funds or institutional investors, would be paid.

The three parts reached a deal last year and submitted it to the court in February. It was approved in April, settling the disputes among the entities.

The deal provides Lehman Brothers Holdings $2.3 billion for customer claims and $14 billion for general unsecured claims. The European unit will receive $9 billion for customer claims and $4 billion for unsecured claims.

You are the best! Thank you

But it means 6B more to pay, only on this class. Where the money will come from? Im lost on this with so many subsidiaries..

Cotton, what opinion do you have about the statment from Dutch administrator about He expects a 32% recovery on LBT notes (Class 4A)? It would be a 15% above POR statement. As I can read, LBT only assets is its 34B claim against LBHI. Does this addtional distribution change the landscape? Thanks

Constrained assets provide alpha says hedge fund advisor

http://www.ftseglobalmarkets.com/news/investors-look-to-constrained-assets-for-alpha-says-hedge-fund-advisor.html

POR is the BK law. And it says discharge after satisfactio in full.

It is explained very well in our cousin italian forum:

http://translate.google.com/translate?hl=en&sl=it&u=http://www.investireoggi.it/forum/obbligazioni-lehman-brothers-lbhi-lbt-status-e-prospettive-vt72905-125.html&prev=/search%3Fq%3DLEHMAN%2BBROTHERS%2BLBT%26biw%3D1024%26bih%3D610%26tbs%3Dqdr:d

LBT Notes

http://www.fondsnieuws.nl/nieuws/headlines/artikelen/15888-lehman-brothers-betaalt-beleggers-39-mrd.html

"Investors in structured notes of Lehman Brothers Treasury BV, registered in the Netherlands part of the U.S. investment bank, get a first payment of $ 3.9 billion. That says lawyer Frédéric Verhoeven Houthoff Buruma opposite the FD.

Investors had hundreds of millions invested in structured notes where Lehman Brothers was counterparty. When the U.S. investment bank went bankrupt on September 15, 2008, the notes were less secure than private investors were led to believe.

The 3.9 billion dollar belegges get now, is the first installment of a longer series of reimbursements, says Verhoeven opposite the FD. The Dutch subsidiary has a claim of $ 34.5 billion at Lehman Brothers Holdings Inc.. The American mother expected to be. 17 percent of the claim paid

Verhoeven counting on a payout of between 17 and 32 percent. That means it could be. Paid a total of about $ 6 billion

Efforts are being made by Verhoeven and other lawyers involved to do twice. An annual return The first is on May 8. Tomorrow,

The Dutch part of Lehman Brothers had sold nearly 4000 notes, bonds or complex."

I believe the difference could be explained by the direct claim against LBT.

There is no reason to sell now.

I think wamugold is trying to buy some cheap CTs shares, but I take, for now, what the POR says, and it says CTs are debt, class 10B, and subject to discharge after satisfaction in full of the Plan. That is the written word, and the rest is speculation. The guarantee is a strong point in favor of survival, but all of us read how LBHI interprets the "Other financial obligations" issue and the fact that Trustee won´t have enough money. So, I have a cautious optimism about the matter, expecting the best outcome for us.

Docket 37189...some agreement coming about these RSU´s claims? Maybe some offering coming. They are delaying a conference with the Judge.

The way these lawyers object, suggests they don´t expect a recovery.

Thank you- It sounds better now. I appreciate your feedback.

Cotton

I was reading some dockets about objections filed by Stamell & Schager LLP about the Omnibus objections to clasify RSUs and CSAs agreements.

From Docket 30142 - page 5:

" As Debtor and the Court know (although not disclosed in the Omnibus Objections) the order that reclasiffies claims for unpaid compensation to equity interest will cause, in practical terms, the incomplete expungement of their claims. This fact has not been disclosed in either the Omnibus objection or the Reclassification Orders Debtors submitted to the Court when the objections were granted".


How do you read this? thanks.

I prefer to read the pending % on POR. I see pending distribution above 3B and close to 9/10B. I agree about some recovery of restricted cash because of pending claims, but Im not so sure about the % involved under the POR. We will see on next MORs

I always added those 10B of LBHI on unsecured claims allowed by LBI in the total recovery from SIPA. Im not sure about the remaining 4B in another subsidiaries.

They have, but nothing was reported yet.

http://www.pwc.co.uk/business-recovery/administrations/lehman/index.jhtml

LBHI will be allowed general unsecured claims of $13.984 billion (including $1.5 billion relating to a subrogated claim by JP Morgan against LBI).

It is my understanding that It did release 316MM from restricted cash. (Cash pledged to JPMorgan -CDA Note (4) on Restricted cash table.

Lehman Sues To Slash Syncora’s $1.3B Mortgage Note Claim

http://www.law360.com/insurance/articles/438462

Some claims transferred:

Docket 37120
Docket 37128

Google for:
List of Non-LBHI securities - new version 21 October - Clearstream

An excel list of ISIN is available. LBT NOTES.

You can check a list of ISIN - list of filed claims - LBT 27 FEB 2013. pdf

Expectancies. Pending distribution in every class is in a range abt. 4/5 %. I saw some LBT notes being transferred - Clas 4A - The buyer, What is he waiting for?

I did see some for millions, not so low as Nellaform suggests. He is right about withrawals and cancellations.

With "The End" so close, I don´t like to see so many claims changing hands... Is there any clue about how much the buyers are paying on the dollar for these claims?

I still think that CTs have great chances of being discharged with the whole package of classes after satisfaction in full. In fact,BK - Chapter 11 law determines a discharge of the allowed claims under a POR inmeditalely after commencement day. We didn´t see that yet, probably because of that agreement with IRS. In favor, they are still quoting and eventually CTs could have the fate of UK subordinated notes, going to the OBS. But the POR said it a couple of times, discharge of allowed claims after satisfaction in full, and exhibit 10, saying there is no money for subordinated claims. Finallly they remove all the subordinated allowed claims of LBF from BS.

Last distribution surpassed the free cash available at March 31.. you were rigth and some reserves under disputed unsecured claims were already free on April 4.

LBI and LBIE agreement:

LBI Settlement Agreement: U.S Bankruptcy Court approval obtained and further evidence filed with the English High Court – 25/04/2013

In our communication dated 22 March 2013, we indicated that the settlement agreement, entered into by the Trustee (the “Trustee”) for Lehman Brothers Inc. (“LBI”), Lehman Brothers International (Europe) (“LBIE”) acting by the Joint Administrators and the Joint Administrators, is subject to approval by the U.S Bankruptcy Court in LBI’s insolvency proceeding under the Securities Investor Protection Act and an order of the English High Court.

The hearing in respect of the motions filed by the Trustee seeking the approval of the U.S Bankruptcy Court took place on 16 April 2013. No objections were made at the hearing in respect of the relief requested by the Trustee. The Honourable James M. Peck entered orders granting the requested relief later that day.

The Joint Administrators have today filed a supplementary witness statement in support of the application to the English High Court for directions to cause LBIE to perform its obligations under the Settlement Agreement (the “Application”).

The hearing in respect of the Application is listed to take place on 1 May 2013 and leading counsel on behalf of LBIE and the Trustee are expected to appear. If you would like a copy of the supplementary witness statement or you wish to participate in the Application or require any other information, please send an email to generalqueries@lbia-eu.com. Any future updates relevant to the Application will be published on this website.