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Docket # 2
Affidavit of then CFO
Cool.
This is the voluntary petition filed by LBHI on Sept 15 2008. Page 29
media.washingtonpost.com/wp-srv/business/documents/LehmanBankruptcy.pdf
Enjoy !
28. The second initiative involved the transfer of the Company’s
commercial loan assets to a new company which would be owned by the Debtor’s
shareholders. Management believed that divorcing the real estate assets from the rest of
the Company would relieve the pressure on the Company, while permitting shareholders
to benefit from the full value of such assets when the markets recover.
media.washingtonpost.com/wp-srv/business/documents/LehmanBankruptcy.pdf
Page 29/76
They are paying senior creditors from Class 1 -Class 9 by settled percentages, in cash and as and when there is cash available.
In order to use the NOLs properly, the company assets have to be greater than liabilities.And also old equity and creditors need to get atleast 51% in the new company imho.
And CTs have a subordinated debt priority at the bottom of the creditors water fall.But CTs are senior to equity and need to be paid in full before there is any distribution to equity.
All the creditors are settled with LBHI and other debtors to put assets with LAMCO for a new business which can help utilizing 54B NOLs available in 5 years from effective date.All creditors can be satisfied full with cash paid and future stock distributions.
That is the only way to resolve this mega case and 100000s of claims filed against it.AJMO.
Does his case related to CTs at all?.It sounds like a non related case to LBHI.
VERY INTERESTING
www.sidedraught.com/stocks/LehmanBros/William%20Kuntz/17-1.pdf
Wate Of Time.
Bryan Marsal's declaration that the assets were not at Mark to Market.I dont expect them to do it soon, it takes time to value the company which filed BK 11 with 640B in Assets and 617B liabilities.The liabilities were reduced to around 270-292B, but the assets were not.The assets are way way more than any one's expectation, LB is existing.Once they get rid of / fulfill the liabilities, eventually they will back to business as usual with all the asset valuations, AJMOH.
Subordinated Notes of LBI, not LBHI.
CTs are subordinated notes of LBHI.
Do i miss something?
These are allowed claims by LBHI for around 10.5 Billion class 10B.
POR
Class 10B Subordinated Notes means, collectively, (a) the 6.375% Subordinated Deferrable Interest Debentures due 2052, issued pursuant to the Fourth Supplemental Indenture, dated as of March 17, 2003, between LBHI and JPMorgan Chase Bank, as trustee; (b) the 6.375% Subordinated Deferrable Interest Debentures due October 2052, issued pursuant to the Fifth Supplemental Indenture, dated as of October 31, 2003, between LBHI and JPMorgan Chase Bank, as trustee; (c) the 6.00% Subordinated Deferrable Interest Debentures due 2053, issued
pursuant to the Sixth Supplemental Indenture, dated as of April 22, 2004, between LBHI and JPMorgan Chase Bank, as trustee; (d) the 6.24% Subordinated Deferrable Interest Debentures due 2054, issued pursuant to the Seventh Supplemental Indenture, dated as of January 18, 2005, between LBHI and JPMorgan Chase Bank, as trustee; (e) the 5.75% Subordinated Notes due 2017, issued pursuant to the Ninth Supplemental Indenture, dated as of October 24, 2006, between LBHI and JPMorgan Chase Bank, as trustee; (f) the Fixed and Floating Rate Subordinated Notes Due 2032, issued pursuant to the Tenth Supplemental Indenture, dated as of May 1, 2007, between LBHI and JPMorgan Chase Bank, as trustee; (g) the 6.50% Subordinated Notes Due 2017, issued pursuant to the Thirteenth Supplemental Indenture, dated as of July 19, 2007, between LBHI and The Bank of New York, as trustee; (h) the 6.875% Subordinated Notes Due 2037, issued pursuant to the Fourteenth Supplemental Indenture, dated as of July 19, 2007, between LBHI and The Bank of New York, as trustee; (i) the 6.75% Subordinated Notes Due 2017, issued pursuant to the Fifteenth Supplemental Indenture, dated as of December 21, 2007, between LBHI and The Bank of New York, as trustee; and (j) the 7.50% Subordinated Notes Due 2038, issued pursuant to the Sixteenth Supplemental Indenture, dated as of May 9, 2008, between LBHI and The Bank of New York, as trustee.
----------------------
viii) Subordinated Class 10B Distribution: Senior Unsecured Claims, Senior Affiliate Claims, Senior Affiliate Guarantee Claims and Senior Third-Party Guarantee Claims.
-----------------------
1.159 Subordinated Class 10B Claim means any Claim against LBHI arising under the Class 10B Subordinated Notes.
--------------------------
4.14 LBHI Class 10B – Subordinated Class 10B Claims against LBHI.
(a) Impairment and Voting. LBHI Class 10B is impaired by the Plan. Each holder of an Allowed Claim in LBHI Class 10B is not entitled to vote to accept or reject the Plan and is conclusively deemed to have rejected the Plan.
(b) Distributions. Holders of Allowed Claims in LBHI Class 10B shall not receive any Distributions on account of such Claims unless and until all holders of Allowed Claims in LBHI Class 3, LBHI Class 4A, LBHI Class 4B and LBHI Class 5 are satisfied in full, in which case each holder of an Allowed Claim in LBHI Class 10B shall receive its Pro Rata Share of (i) Available Cash from LBHI and (ii) Subordinated Class 10C Distribution.
---------------------
6.5 Plan Settlement. Pursuant to section 1123 of the Bankruptcy Code and Bankruptcy Rule 9019, the Plan incorporates a proposed compromise and settlement of numerous inter-Debtor, Debtor-Creditor and inter-Creditor issues designed to achieve an economic settlement of Claims against all of the Debtors and an efficient resolution of the Chapter 11 Cases. The Plan constitutes a settlement of potential litigation of issues, including, without limitation, the potential substantive consolidation of the Lehman enterprise, the validity and enforceability of certain Affiliate Guarantee Claims, the allowance of certain Affiliate Claims, including Intercompany Funding Balances owed to LBHI by Subsidiary Debtors, the potential equitable, contractual or statutory subordination of certain Claims and the ownership and rights of various Debtors and their Affiliates with respect to certain assets
From the prospectus
Rights Upon Termination
Upon any dissolution, winding-up or liquidation of the trust involving the liquidation of the subordinated debentures, the holders of the preferred securities will be entitled to receive, out of assets held by the trust, subject to the rights of any creditors of the trust, the liquidation distribution in cash. Upon any voluntary or involuntary liquidation or bankruptcy of Holdings, the property trustee, as holder of the subordinated debentures, would be a subordinated creditor of Holdings, subordinated in right of payment to all senior debt as set forth in the subordinated indenture, but entitled to receive payment in full of principal and interest before any stockholders of Holdings receive payments or distributions. Because Holdings is the guarantor under the guarantee and, under the subordinated indenture, has agreed to pay for all costs, expenses and liabilities of the trust (other than the trust's obligations to the holders of the preferred securities), the positions of a holder of preferred securities and a holder of the subordinated debentures relative to other creditors and to stockholders of Holdings in the event of liquidation or bankruptcy of Holdings would be substantially the same.
Enjoy...
NON DEBTORS
Lehman Brothers Finance S.A.(TD is showing that for LEHNQ)
Lehman Brothers Inc (Europe) - LBIE
SOFA of LBHI shows CTs claims are on these entities
Lehkamn Brothers Finance S.A.
Lehman Brothers Inc (Europe) - LBIE
Intercompany Funds Agreement
------------------------------
INTERCOMPANY AGREEMENT
THIS INTERCOMPANY AGREEMENT (together with all appendices,
schedules and annexes hereto, which are hereby deemed a part hereof, and as amended, modified
or supplemented from time to time, this “Agreement”), is made as of the ___ day of
___________, 2010, by and between: (i) Lehman Brothers Holdings Inc., a corporation
organized under the laws of Delaware (“LBHI”); and (ii) each of the entities set forth on
Schedule A hereto (which entites are also signatories to this Agreement) and their subsidiaries
that are not subject to any bankruptcy, insolvency, administration or similar proceedings in a non
U.S. jurisdiction, in each case that own or control any of the Managed Assets (each such entity, a
“Schedule A Entity” and collectively, the “Schedule A Entities”). All capitalized terms not
defined in this Agreement shall have the meaning ascribed to such terms in the Asset
Management Agreement (as defined below).
RECITALS
WHEREAS, LBHI is a debtor in possession under title 11 of the United States
Code, 11 U.S.C. § 101 et seq. (the “Bankruptcy Code”), and filed a voluntary petition for relief
under chapter 11 of the Bankruptcy Code on September 15, 2008 in the United States
Bankruptcy Court for the Southern District of New York (Manhattan) (the “Bankruptcy Court”)
(Case No. 08-13555(3MP)) (the “Bankruptcy Case”);
WHEREAS, each of the entities set forth on Schedule A hereto is also a debtor in
possession and subsequently filed a voluntary petition for relief under chapter 11 of the
Bankruptcy Code in the Bankruptcy Court;
WHEREAS, on [], 2010, LBHI and LAMCO LLC, a limited liability company
organized under the laws of Delaware (the “Manager”) entered into an Asset Management
Agreement (together with all appendices, schedules and annexes thereto, the “Asset Management
Agreement”) pursuant to which LBHI engaged the Manager to perform services with respect to
assets and investments currently held by LBHI and the Schedule A Entities;
--------------------
Here Schedule A is missing
------------------
LBHI LBI and LBIE made agreements in 2013
http://www.prnewswire.com/news-releases/lehman-brothers-holdings-inc-lehman-brothers-inc-and-lehman-brothers-international-europe-resolve-intercompany-claims-193347921.html
So IMHO, CTs claims are out of bankruptcy from LBI and LBIE which should be passed to LBHI.
--------------
Interesting from SIPA latest balance sheet
Note 13 – Subordinated Claims/Equity
Amounts do not include $14.734 billion of allowed subordinated claims under the settlement
agreement with Lehman Brothers Holdings Inc. and other claims that have been subordinated or
reclassified to equity. The Trustee does not anticipate making any distributions on account of
subordinated claims or equity.
-----------------
So every asset probably put into LAMCO and issued one stock to LBHI.
If we can find the Schedule A entities, we can see who is getting what.IMHO.
TRUPS IS EQUITY
From 10-K
Junior Subordinated Notes
Junior subordinated notes are notes issued to trusts or limited partnerships (collectively, the “Trusts”) and qualify as equity
capital by leading rating agencies (subject to limitation). The Trusts were formed for the purposes of: (a) issuing securities
representing ownership interests in the assets of the Trusts; (b) investing the proceeds of the Trusts in junior subordinated
notes of Holdings; and (c) engaging in activities necessary and incidental thereto. The securities issued by the Trusts are
comprised of the following:
November 30,
In millions 2007 2006
Trust Preferred Securities:
Lehman Brothers Holdings Capital Trust III, Series K $ 300 $ 300
Lehman Brothers Holdings Capital Trust IV, Series L 300 300
Lehman Brothers Holdings Capital Trust V, Series M 400 399
Lehman Brothers Holdings Capital Trust VI, Series N 225 225
Lehman Brothers Holdings Capital Trust VII 1,000 —
Lehman Brothers Holdings Capital Trust VIII 500 —
Euro Perpetual Preferred Securities:
Lehman Brothers U.K. Capital Funding LP 256 231
Lehman Brothers U.K. Capital Funding II LP 369 329
Enhanced Capital Advantaged Preferred Securities (ECAPS®):
Lehman Brothers Holdings E-Capital Trust I 255 296
Enhanced Capital Advantaged Preferred Securities (Euro ECAPS®):
Lehman Brothers U.K. Capital Funding III L.P. 577 658
Lehman Brothers U.K. Capital Funding IV L.P. 295 —
Lehman Brothers U.K. Capital Funding V L.P. 500 —
$4,977 $2,738
---------------------------------
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange
on which registered
Common Stock, $.10 par value New York Stock Exchange
Depositary Shares representing 5.94% Cumulative Preferred Stock, Series C New York Stock Exchange
Depositary Shares representing 5.67% Cumulative Preferred Stock, Series D New York Stock Exchange
Depositary Shares representing 6.50% Cumulative Preferred Stock, Series F New York Stock Exchange
Depositary Shares representing Floating Rate Cumulative Preferred Stock, Series G New York Stock Exchange
5.857% Normal Mandatory Capital Advantaged Preferred Securities New York Stock Exchange
5.857% Floating Rate Normal Mandatory Capital Advantaged Preferred Securities New York Stock Exchange
6.375% Trust Preferred Securities, Series K, of Subsidiary Trust (and Registrant’s guarantee thereof) New York Stock Exchange
6.375% Trust Preferred Securities, Series L, of Subsidiary Trust (and Registrant’s guarantee thereof) New York Stock Exchange
6.00% Trust Preferred Securities, Series M, of Subsidiary Trust (and Registrant’s guarantee thereof) New York Stock Exchange
6.24% Trust Preferred Securities, Series N, of Subsidiary Trust (and Registrant’s guarantee thereof) New York Stock Exchange
2.00% Medium Term Notes, Series H, Due March 3, 2009 Performance Linked to the Common Stock of Morgan Stanley (MS) American Stock Exchange
Absolute Buffer Notes Due July 29, 2008, Linked to the Dow Jones EURO STOXX50SM Index (SX5E) American Stock Exchange
Absolute Buffer Notes Due July 7, 2008, Linked to the Dow Jones EURO STOXX 50SM Index (SX5E) American Stock Exchange
Currency Basket Warrants Expiring February 13, 2008 American Stock Exchange
Dow Jones Global Titans 50 Index SM Stock Upside Note Securities® Due February 9, 2010 American Stock Exchange
Dow Jones Industrial Average Stock Upside Note Securities® Due April 29, 2010 American Stock Exchange
Index-Plus Notes Due December 23, 2009, Performance Linked to the Russell 2000® INDEX (RTY) American Stock Exchange
Index-Plus Notes Due March 3, 2010, Linked to the S&P 500® Index (SPX) American Stock Exchange
Index-Plus Notes Due November 15, 2009, Linked to the Dow Jones STOXX 50SM Index (SX5P) American Stock Exchange
Index-Plus Notes Due September 28, 2009, Performance Linked to S&P 500® Index (SPX) American Stock Exchange
Japanese Yen Linked Warrants Expiring June 20, 2008 American Stock Exchange
Nasdaq-100® Index Rebound Risk AdjustiNG Equity Range SecuritiesSM Notes Due June 7, 2008 American Stock Exchange
Nikkei 225SM Index Stock Upside Note Securities® Due June 10, 2010 American Stock Exchange
S&P 500® Index Callable Stock Upside Note Securities® Due November 6, 2009 American Stock Exchange
S&P 500® Index Stock Upside Note Securities® Due August 5, 2008 American Stock Exchange
LBHI transferred illiquid assets to LAMCO to manage the assets and developed a new kind of platform to manage these assets classes for itself and third parties.Mean while they could have utilized the asset sales against the NOLs.Probably they must be sitting with large pile of cash before they go public, jmho.
Probably around March 2017. 5 years from the reorg.LBHI wanted to take their loss carry forwards for 5 years and had agreements with CC and LAMCO for 5 years.
Exactly 5 stars - LAMCO
STOCK DISTRIBUTIONS ARE PRESERVED
Title to Plan Trust Stock and the Stock Distributions.
(a) The issuance or transfer, respectively, of the Plan Trust Stock and the Stock Distributions to the Plan Trust are made by LBHI for the benefit and on behalf of the Beneficiaries consistent with their former relative priority and economic entitlements as holders
of LBHI Stock. The Plan Trust may not exercise any voting rights appurtenant to the Plan Trust Stock in conflict with Article VII of the Plan.
TRUST INTERESTS FOR EQUITY -
On the Effective Date, all existing equity securities issued by LBHI will be cancelled in exchange for un-certificated and non-transferable beneficial interests in the assets of the Plan Trust (“Trust Interests”). Each holder of an existing equity interest shall neither receive nor retain any property or interest in property on account of such equity interest other than the Trust Interests.
382(1)(5) --- To utilize the NOLs.Amazing stuff to look into.
Hey anyone know why there was a restriction on 5% holders to trade on most of the preferreds and all claims, filed in Nov 2008?
Barclays paid 45B in Cash !
In the Rule 60(b) motions, LBHI contends that the disclosed Barclays Purchase Agreement structure was essentially abandoned by September 19, 2008, the day of the hearing to approve the sale to Barclays because, among other reasons, an executory securities repurchase agreement (the “Repurchase Agreement”), entered into on September 18, 2008 between LBI and Barclays (who replaced the Federal Reserve Bank in this role), was terminated without disclosure. The Debtors further contend that the Repurchase Agreement was used as a mechanism to deliver the undisclosed discount. Pursuant to the Repurchase Agreement, Barclays transferred $45 billion cash to LBI on September 18, 2008 in exchange for approximately $50 billion in securities. The Repurchase Agreement was terminated on September 19, 2008 and Barclays kept all of the collateral giving Barclays a $5 billion undisclosed discount.
Page 51
Footnote 7
https://www.sec.gov/Archives/edgar/data/806085/000110465910020165/a10-8193_1ex99d1.htm
Bryan Marsal's statement in the court
Sound Business Reasons Support the Relief Requested
17. In my considered business judgment, I believe that the establishment of
LAMCO and LBHI’s entry into the LAMCO Agreements will provide substantial benefits to all
of the Debtors’ stakeholders.
If the equity gets any value, 10A thru 10C need to get paid in full.
CTs were issued by LBHI as subordinated note, ie debt.Equity is not debt, hence locked so that there wont be any change of ownership due to acquiring equity at a cheaper price.CTs are debt claims, still trading.Whoever holds the claims at the time of record date would be distributed after all claims in senior are paid,before equity gets paid.IMHO they can't lock CTs trading legally and they let them trade it for a reason IMHO.
LBHI chose for 5 yrs carry forward utilizing the assets to offset thru LAMCO IMHO.They had an agreement with CC.20 yrs is a different BK, WM.
Balance sheet in BK is a joke.Its not real, not audited.They put a big zero on all the assets and dont value them until needed to be valued.If the debtors had 200B in assets, they still can claim that they have 2 million in assets basing on some bk rule.
LBHI had 54B in NOLs to be used for 5 years.IMHO LAMCO is the vehicle to use the tax attribues available by generating income and selling some of the assets during these five years to utilize the NOLs.They could sell it or partner with another third party such as old WMI and both can benefit.
All just IMHO.
FUNDS AVAILABILITY FOR UNSECURED CREDITORS
VOLUNTARY PETITION 9/15/2008
Debtor estimates that funds will be available for distribution to unsecured creditors ---- YES
http://dm.epiq11.com/#/case/LBH/info
Its well written in the DS and POR and other documents such as an agreement between creditors to transfer certain assets to LAMCO Holdings LLC and LBHI LAMCO SPV.
5 yrs was the agreed time frame which would be Mar 6th 2017.
Its under positions
No change in etrade either.Only see it in TD.
Did any one observe LEHNQ description change in TD Ameritrade
From Lehman Bros Cap Trust VI to Lehman Brothers Fin SA
?
It should be around Mar 6,2017
5th anniversary of the rebirth
As per the agreement with cc and lamco for the benefit of all stakeholder of the Debtors.
That means the end is near.LBHI sr creditors got paid more than what was promised in the plan.
As i see it, the plan is not cramdown.The reason, classes 1-9 are getting paid and classes 10A,B,C, 11 and 12 are not receiving any cash like their seniors.But if the seniors are satisfied in Full as agreed upon in the Plan, 10A,B,C will be satisfied in full before Equity receives any distribution imho.
If it was crammed down, at least on senior class should not be paid , and equity gets paid by by-passing that senior class.That is not the case here.
Whats your point?
To survive and utilize the NOLs, the company should not go for a 2nd ownership change for certain period of change using CH11.Thats why the debtors filed a notice in Nov 2008 restricting trading on equity not to exceed around 4% or so and the equity should survive to show that the corporation is not changed ownership.
But, absolute priority should be applicable in all the plans except when the plan is crammed down.LBHI por is not crammed down and based on absolute priority, jr.note should be paid before equity gets any distribution.
LAMCO CAN UTILIZE THE NOLs USING ASSSETS AND subject to IRC 382
a. Asset Dispositions
The Plan does not specify the manner in which assets will be disposed of
in order to satisfy Claims. However, that notwithstanding, certain assets may be
disposed of over time during the pendency of the Plan that may produce taxable income.
LBHI’s NOL carryforward should generally be available to offset any tax gains or
operating income that might be realized over time as LAMCO manages the Debtor’s
business operations and disposes of certain Debtor’s assets, subject to the potential
application of section 382 of the IRC, as discussed below. See Section A.3.b.ii—
“Internal Revenue Code Section 382 Limitations—Possible Application to the LBHI Tax
Group.”
BS INVITATION HOMES 10B IPO
Any link with WMIH?
Senate Votes 94 – 4 in Favor of 21st Century Cures Act #curesnow
Some of the highlights of the bill that are of interest to the rare disease community include:
$4.8 billion in new funding for the National Institutes of Health (NIH)
$500 million in new funding for the Food and Drug Administration (FDA)
Reauthorization of the Rare Pediatric Disease Priority Review Voucher program through 2020
Funding for the establishment of a national neurological disease surveillance system coordinated by the Centers for Disease Control and Prevention (CDC)
Improved biomarker qualification
Strengthened patient engagement at the FDA through the Patient Focused Impact Assessment Act
A regenerative medicine designation to allow such products to qualify for priority review and accelerated approval
One item that was dropped from the act was The Orphan Products Extensions Now, Accelerating Cures and Treatments (OPEN ACT) which would have provided an incentive for companies to repurpose existing drugs for rare disease indications.
http://www.raredr.com/news/senate-votes-94-4
Could you be more elaborate if you can?.Until class 9 are getting paid some cash.The equity in LAMCO is owned by LBHI.And LBHI can distribute this stock to former equity.But before doing that, it has to pay all creditor classes including subordinated notes 10A,10B and 10C in full as per POR.
ABSOLUTE PRIORITY
Does this case plan follow absolute priority?.
If it is, then the water fall has to go thru 10A,10B,10C before to classes 11 and 12.IMHO.
Important Date 01/01/2017
KKR can short this, officially.
NEWS from 11/23 8-K
Chad smith's salary got almost doubled for doing nice work.