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Ok, so ABK goes up 32% during market hours and 2% after hours=34% for the day... LEHMAN had claims for 10s of millions against ABK and ABK had 60 claims against LEHMAN for 6.1 billion.
How will the market react to this... I don't know...IMHO, the next couple of days should be exciting based on this information. Go LEHMAN!!!
ABK:
Lehman settles Ambac claim
Lehman Brothers Holdings has reached a deal with bond insurer Ambac Assurance which would see the two firms withdraw legal claims against each other, according to The Australian Financial Review.
The deal, which is set for review by the US Bankruptcy Court in New York on October 20, would see Ambac drop 60 claims against Lehman, worth a total of $US6.1 billion ($6.24 billion).
The claims allege that the bankrupt investment bank breached obligations on certain residential mortgage-backed securities, the paper reports.
In return, Lehman would withdraw claims worth tens of millions of dollars against Ambac, a subsidiary of Ambac Financial Group.
Lehman had claimed that it was entitled to payments relating to termination of Ambac contracts, after the bond insurer's bad assets were taken over by regulators in March, the Financial Times reports.
Court filings said no cash or securities would be exchanged in the settlement, the FT reports.
Litigation Lehman, Ambac Assurance Agree to Settle All Claims
Lehman Brothers Holdings Inc. reached a deal with Ambac Assurance Corp. that calls for the insurance company to drop its $6.1 billion claim against the bank's bankruptcy estate.
In a filing Tuesday in U.S. Bankruptcy Court in Manhattan, Lehman said it has agreed to settle all claims filed by Ambac, the bond-insurance unit of Ambac Financial Group Inc. Ambac Assurance, which is undergoing rehabilitation proceedings in Wisconsin, filed 60 claims against Lehman totaling more than $6.1 billion stemming from Lehman's September 2008 bankruptcy filling. Ambac had issued guarantees on securitizations of residential mortgages and credit-default swaps on Lehman mortgage deals.
The deal, which has the backing of Lehman's unsecured creditors, slashes billions from the pool of unsecured claims against Lehman in return for Lehman dropping its claims that Ambac owes it tens of millions of dollars under several disputed Ambac-insured derivatives deals. The pact also calls for mutual releases of all claims between Lehman and Ambac.
A hearing on the settlement, which requires bankruptcy court approval, is scheduled for Oct. 20.
Because Lehman is barred by a temporary injunction issued by the Wisconsin rehabilitation court from pursuing its claims against Ambac, Lehman said it would likely spend "months if not years" in costly, "highly speculative" litigation, which even if successful "would yield no better result" than the settlement.
Wisconsin's insurance commissioner, Sean Dilweg, said Tuesday he expects to file his rehabilitation plan for Ambac in a state court late this week or sometime next week. Mr. Dilweg has already set up a segregated account for $68 billion worth of policies that Ambac sold on structured securities, including those at the center of the dispute with Lehman, and temporarily prevented those policyholders from collecting money from the insurer.
In a recent "state of the estate" presentation in bankruptcy court, Lehman said it estimates unsecured claims will ultimately total between $250 billion and $300 billion, down from $860 billion previously forecast.
Lehman's plan to pay back its creditors calls for general unsecured creditors of the main holding company to recover between 10.4% and 14.7% on their claims. Unsecured creditors of some of the company's subsidiaries, including its derivatives arm, are slated to get more.
After Lehman collapsed in September 2008, the company filed the largest Chapter 11 case in U.S. history. Its bankruptcy consists of 23 different entities each with separate Chapter 11 plans, with creditors of each debtor being paid from the assets of that debtor.
Lehman hopes to have a Chapter 11 plan confirmed by early 2011.
Ambac shares were up 30% at 76 cents in midday trade on the New York Stock Exchange.
Litigation Lehman, Ambac Assurance Agree to Settle All Claims
Lehman Brothers Holdings Inc. reached a deal with Ambac Assurance Corp. that calls for the insurance company to drop its $6.1 billion claim against the bank's bankruptcy estate.
In a filing Tuesday in U.S. Bankruptcy Court in Manhattan, Lehman said it has agreed to settle all claims filed by Ambac, the bond-insurance unit of Ambac Financial Group Inc. Ambac Assurance, which is undergoing rehabilitation proceedings in Wisconsin, filed 60 claims against Lehman totaling more than $6.1 billion stemming from Lehman's September 2008 bankruptcy filling. Ambac had issued guarantees on securitizations of residential mortgages and credit-default swaps on Lehman mortgage deals.
The deal, which has the backing of Lehman's unsecured creditors, slashes billions from the pool of unsecured claims against Lehman in return for Lehman dropping its claims that Ambac owes it tens of millions of dollars under several disputed Ambac-insured derivatives deals. The pact also calls for mutual releases of all claims between Lehman and Ambac.
A hearing on the settlement, which requires bankruptcy court approval, is scheduled for Oct. 20.
Because Lehman is barred by a temporary injunction issued by the Wisconsin rehabilitation court from pursuing its claims against Ambac, Lehman said it would likely spend "months if not years" in costly, "highly speculative" litigation, which even if successful "would yield no better result" than the settlement.
Wisconsin's insurance commissioner, Sean Dilweg, said Tuesday he expects to file his rehabilitation plan for Ambac in a state court late this week or sometime next week. Mr. Dilweg has already set up a segregated account for $68 billion worth of policies that Ambac sold on structured securities, including those at the center of the dispute with Lehman, and temporarily prevented those policyholders from collecting money from the insurer.
In a recent "state of the estate" presentation in bankruptcy court, Lehman said it estimates unsecured claims will ultimately total between $250 billion and $300 billion, down from $860 billion previously forecast.
Lehman's plan to pay back its creditors calls for general unsecured creditors of the main holding company to recover between 10.4% and 14.7% on their claims. Unsecured creditors of some of the company's subsidiaries, including its derivatives arm, are slated to get more.
After Lehman collapsed in September 2008, the company filed the largest Chapter 11 case in U.S. history. Its bankruptcy consists of 23 different entities each with separate Chapter 11 plans, with creditors of each debtor being paid from the assets of that debtor.
Lehman hopes to have a Chapter 11 plan confirmed by early 2011.
Ambac shares were up 30% at 76 cents in midday trade on the New York Stock Exchange.
Ambac to Withdraw $6 Billion in Claims Against Lehman
Oct. 6 (Bloomberg) -- Ambac Financial Group Inc. agreed to withdraw more than $6 billion in claims against bankrupt Lehman Brothers Holdings Inc. in a proposed settlement of disputes between the two companies over derivatives transactions, according to a court filing.
The claims, filed in September 2009, were based on Lehman’s “purported breach of obligations” related to residential mortgage-backed securities deals with Ambac, Lehman said in yesterday’s filing in U.S. Bankruptcy Court in New York. Settling with Ambac, Lehman would release the insurer from demands for unspecified payments and from liabilities under derivatives transactions insured by Ambac, it said.
Ambac, the second-largest bond insurer before the onset of the credit crisis, lost its AAA credit ratings in 2008 after a surge in losses on securities backed by mortgages. In March, it started “rehabilitation proceedings” in a Wisconsin court that bars Lehman from suing the company over the claims or insured derivatives deals, according to the filing.
Even if it could sue, “the cash payout received in the rehabilitation proceedings would likely be only a fraction of the face amount of any claim the debtors may ultimately acquire,” Lehman said.
Lehman’s proposed settlement, which needs a judge’s approval, comes up for a hearing on Oct. 20.
Ambac to Withdraw $6 Billion in Claims Against Lehman
Oct. 6 (Bloomberg) -- Ambac Financial Group Inc. agreed to withdraw more than $6 billion in claims against bankrupt Lehman Brothers Holdings Inc. in a proposed settlement of disputes between the two companies over derivatives transactions, according to a court filing.
The claims, filed in September 2009, were based on Lehman’s “purported breach of obligations” related to residential mortgage-backed securities deals with Ambac, Lehman said in yesterday’s filing in U.S. Bankruptcy Court in New York. Settling with Ambac, Lehman would release the insurer from demands for unspecified payments and from liabilities under derivatives transactions insured by Ambac, it said.
Ambac, the second-largest bond insurer before the onset of the credit crisis, lost its AAA credit ratings in 2008 after a surge in losses on securities backed by mortgages. In March, it started “rehabilitation proceedings” in a Wisconsin court that bars Lehman from suing the company over the claims or insured derivatives deals, according to the filing.
Even if it could sue, “the cash payout received in the rehabilitation proceedings would likely be only a fraction of the face amount of any claim the debtors may ultimately acquire,” Lehman said.
Lehman’s proposed settlement, which needs a judge’s approval, comes up for a hearing on Oct. 20.
Lehman Settles $6.1 Billion In Ambac Bankruptcy Claims
http://online.wsj.com/article/SB10001424052748703735804575535930614277968.html
Lehman Brothers Holdings Inc. reached a deal with Ambac Assurance Corp. that calls for the insurance company to drop its $6.1 billion claim against the bank's bankruptcy estate.
In a filing Tuesday in U.S. Bankruptcy Court in Manhattan, Lehman said it has agreed to a settlement of all claims filed by Ambac, the bond-insurance unit of Ambac Financial Group Inc.
Ambac Assurance, which is undergoing rehabilitation proceedings in Wisconsin, filed 60 claims against Lehman totaling more than $6.1 billion stemming from Lehman's bankruptcy filling. Ambac had issued financial guarantees on residential mortgage securitizations and credit-default swaps involving Lehman mortgage deals.
The deal, which has the backing of Lehman's unsecured creditors, slashes billions from the pool of unsecured claims against Lehman in return for Lehman dropping its claims that Ambac owes it tens of millions of dollars under several disputed Ambac-insured derivatives deals. The settlement also calls for mutual releases of all claims between Lehman and Ambac.
Because Lehman is barred by a temporary injunction issued by the Wisconsin rehabilitation court from pursuing its claims against Ambac, Lehman said it would likely spend "months if not years" in costly, "highly speculative" litigation, which even if successful "would yield no better result" than the settlement.
A hearing on the settlement, which requires bankruptcy court approval, is scheduled for Oct. 20.
In a recent "state of the estate" presentation in bankruptcy court, Lehman said it estimates unsecured claims will ultimately total between $250 billion and $300 billion, down from $860 billion previously forecast.
Lehman's plan to pay back its creditors calls for general unsecured creditors of the main holding company to recover between 10.4% and 14.7% on their claims. Unsecured creditors of some of the company's subsidiaries, including its derivatives arm, are slated to get more.
After Lehman collapsed in September 2008, the company filed the largest Chapter 11 case in U.S. history. Its bankruptcy consists of 23 different entities each with separate Chapter 11 plans, with creditors of each debtor being paid from the assets of that debtor.
Lehman hopes to have a Chapter 11 plan confirmed by early 2011.
Lehman Settles $6.1 Billion In Ambac Bankruptcy Claims
http://online.wsj.com/article/SB10001424052748703735804575535930614277968.html
Lehman Brothers Holdings Inc. reached a deal with Ambac Assurance Corp. that calls for the insurance company to drop its $6.1 billion claim against the bank's bankruptcy estate.
In a filing Tuesday in U.S. Bankruptcy Court in Manhattan, Lehman said it has agreed to a settlement of all claims filed by Ambac, the bond-insurance unit of Ambac Financial Group Inc.
Ambac Assurance, which is undergoing rehabilitation proceedings in Wisconsin, filed 60 claims against Lehman totaling more than $6.1 billion stemming from Lehman's bankruptcy filling. Ambac had issued financial guarantees on residential mortgage securitizations and credit-default swaps involving Lehman mortgage deals.
The deal, which has the backing of Lehman's unsecured creditors, slashes billions from the pool of unsecured claims against Lehman in return for Lehman dropping its claims that Ambac owes it tens of millions of dollars under several disputed Ambac-insured derivatives deals. The settlement also calls for mutual releases of all claims between Lehman and Ambac.
Because Lehman is barred by a temporary injunction issued by the Wisconsin rehabilitation court from pursuing its claims against Ambac, Lehman said it would likely spend "months if not years" in costly, "highly speculative" litigation, which even if successful "would yield no better result" than the settlement.
A hearing on the settlement, which requires bankruptcy court approval, is scheduled for Oct. 20.
In a recent "state of the estate" presentation in bankruptcy court, Lehman said it estimates unsecured claims will ultimately total between $250 billion and $300 billion, down from $860 billion previously forecast.
Lehman's plan to pay back its creditors calls for general unsecured creditors of the main holding company to recover between 10.4% and 14.7% on their claims. Unsecured creditors of some of the company's subsidiaries, including its derivatives arm, are slated to get more.
After Lehman collapsed in September 2008, the company filed the largest Chapter 11 case in U.S. history. Its bankruptcy consists of 23 different entities each with separate Chapter 11 plans, with creditors of each debtor being paid from the assets of that debtor.
Lehman hopes to have a Chapter 11 plan confirmed by early 2011.
Ambac Assurance Drops $6.1 Billion in Claims Against Lehman
http://abcnews.go.com/Business/wireStory?id=11811845
BANGALORE (Reuters) - Lehman Brothers Holdings Inc said Ambac Assurance Corp agreed to withdraw claims worth more than $6.1 billion against the company as part of a global settlement.
The deal has the support of Lehman's unsecured creditors and is yet to be approved by the bankruptcy court, papers filed late on Tuesday showed.
As part of the settlement, the two parties have agreed to release each other from any liability under certain disputed derivatives transactions.
"This global settlement is the result of approximately three months of arm's length, good faith negotiations," Lehman said.
Ambac Assurance's parent, Ambac Financial Group Inc , said in March that it may have to file for bankruptcy if it does not restructure its liabilities by the second quarter of 2011.
The bond insurer, whose toxic assets worth $64 billion were seized by Wisconsin state regulators, is in dire need of capital.
Shares of Ambac have shed more than 26 percent since the seizure of its assets on March 25 till Tuesday's close.
In September, Lehman said it worked to slash claims on the estate and that its differences with creditors are "narrowing."
Lehman filed for Chapter 11 two years ago, in the largest-ever U.S. bankruptcy.
British bank Barclays Plc bought Lehman's main U.S. brokerage business after the bankruptcy filing, and Lehman's other assets are being managed and unwound while operating under bankruptcy protection.
Though not officially settled, Lehman said it has made progress in narrowing the amount of claims from third parties, affiliates and others by more than half, to $464 billion from almost $1.2 trillion.
Ambac Assurance Drops $6.1 Billion in Claims Against Lehman
http://abcnews.go.com/Business/wireStory?id=11811845
BANGALORE (Reuters) - Lehman Brothers Holdings Inc said Ambac Assurance Corp agreed to withdraw claims worth more than $6.1 billion against the company as part of a global settlement.
The deal has the support of Lehman's unsecured creditors and is yet to be approved by the bankruptcy court, papers filed late on Tuesday showed.
As part of the settlement, the two parties have agreed to release each other from any liability under certain disputed derivatives transactions.
"This global settlement is the result of approximately three months of arm's length, good faith negotiations," Lehman said.
Ambac Assurance's parent, Ambac Financial Group Inc , said in March that it may have to file for bankruptcy if it does not restructure its liabilities by the second quarter of 2011.
The bond insurer, whose toxic assets worth $64 billion were seized by Wisconsin state regulators, is in dire need of capital.
Shares of Ambac have shed more than 26 percent since the seizure of its assets on March 25 till Tuesday's close.
In September, Lehman said it worked to slash claims on the estate and that its differences with creditors are "narrowing."
Lehman filed for Chapter 11 two years ago, in the largest-ever U.S. bankruptcy.
British bank Barclays Plc bought Lehman's main U.S. brokerage business after the bankruptcy filing, and Lehman's other assets are being managed and unwound while operating under bankruptcy protection.
Though not officially settled, Lehman said it has made progress in narrowing the amount of claims from third parties, affiliates and others by more than half, to $464 billion from almost $1.2 trillion.
All of my P shares are locked up on GTC, All or None, 1000.00 limit order.
Zecco rules for a trading platform.
Lehman Brothers sells 99.40 lk shrs of Edelweiss Capital... How many more of these are just sitting in their portfolio.
http://www.moneycontrol.com/news/buzzing-stocks/lehman-brothers-sells-9940-lk-shrsedelweiss-capital_488579.html
Over half a billion sale. 617,315,172.3 million.
Lehman Sale Blank Check May Haunt Judge at Barclays Deal Trial
http://www.businessweek.com/news/2010-10-05/lehman-sale-blank-check-may-haunt-judge-at-barclays-deal-trial.html
Enough of this chump change art sales... give us some really $$$$$$ news...
That video is great...LMAO!!!
Great Job!!! You might even get a press release referencing this video...
Nortel and Lehman join forces to challenge TPR powers - BREAKING NEWS
http://www.professionalpensions.com/professional-pensions/news/1736261/nortel-lehman-join-forces-challenge-tpr-breaking-news
Nortel Networks and Lehman Brothers have joined forces to challenge The Pensions Regulator's ability to issue them with a financial support direction.
Lehman Brothers Holdings' European unit and Nortel Networks Corp appeared in court today in London to challenge the law on the regulator's use of a financial support direction (FSD).
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The two firms have both been on the receiving end of the regulator's moral hazard powers.
Two weeks ago, the regulator's determinations panel ruled six subsidiaries in the Lehman Brothers group should provide financial support to the pension scheme and issued an FSD (PP Online 17 September).
The panel is expected to give its reasoning for the decision any day.
In July the regulator chased companies in the Nortel group to provide support for the UK scheme, which had a £2.1bn shortfall on a buyout basis (PP Online 8 July).
However, lawyers have questioned the decision because both Nortel and Lehman Brothers are undergoing bankruptcy proceedings.
This comes after PP revealed lawyers had questioned the regulator's ability to enforce its FSD against the Lehman Brothers subsidiaries due to ongoing insolvency proceedings (PP Online 17 September).
Allen & Overy restructuring team partner Jennifer Marshall said technically a claim can only be made if a debt exists on the insolvency date - but in the Lehman case the regulator is imposing a debt on the subsidiaries after administration.
A spokesman from The Pensions Regulator said: "We cannot comment on an ongoing case or satellite litigation."
I lost patience as I always do... so I slapped the ask @ .02
All I know is I have been tapping the bid on all classes and not getting anything.
Number crunching from sixfoot_flat from yahoo.
STATE OF ESTATE 25-Sep-10 10:04 pm ASSET RECOVERY UPDATE:
The State of the Estate, September 22, 2010,
The future Recovery estimates..........................................................59.3B
On the Balance Sheet of March 31, 2010,
Total Financial Instruments and other Inventory positions..............23.737B
Difference..Increase................................. .........................................35.563B
On March 31, A/L:
Total assets............................253.175B
Liabilities...............................307.286B
Deficit.................................. (-)54.111B
Increase...................................35.563B
New Deficit...........................(-)18.548B
Folks, considering the Recovery Estimates, It seems to me that we will have an increase of 35.563B against the March 31 A/L's deficit of (-) 54.111B
And now if we will consider the litigations and NOL,
Barclay......11B?
JPMorgan..7B?
NOL...........10B?
Total..........28B?... If Leh wins, This will be enough to cover the deficit of 18.541B and 9.46B for the 11B Preferreds.
And Remember that the State Of the Estate, Claims Management, Pg6 is saying that claims maybe reduced at estimate of 250B to 350B.
"Hmmmm!..Seems fit to the total Liability of 307.286B on March31A/L".
Link: http://www.nasdaq.com/asp/quotes_sec.asp...
DO YOUR OWN DUE DILLIGENCE....
DO NOT RELY ON MY OWN ESTIMATES DUE TO OTHER UNCERTAINTIES
Number crunching from sixfoot_flat from yahoo.
STATE OF ESTATE 25-Sep-10 10:04 pm ASSET RECOVERY UPDATE:
The State of the Estate, September 22, 2010,
The future Recovery estimates..........................................................59.3B
On the Balance Sheet of March 31, 2010,
Total Financial Instruments and other Inventory positions..............23.737B
Difference..Increase................................. .........................................35.563B
On March 31, A/L:
Total assets............................253.175B
Liabilities...............................307.286B
Deficit.................................. (-)54.111B
Increase...................................35.563B
New Deficit...........................(-)18.548B
Folks, considering the Recovery Estimates, It seems to me that we will have an increase of 35.563B against the March 31 A/L's deficit of (-) 54.111B
And now if we will consider the litigations and NOL,
Barclay......11B?
JPMorgan..7B?
NOL...........10B?
Total..........28B?... If Leh wins, This will be enough to cover the deficit of 18.541B and 9.46B for the 11B Preferreds.
And Remember that the State Of the Estate, Claims Management, Pg6 is saying that claims maybe reduced at estimate of 250B to 350B.
"Hmmmm!..Seems fit to the total Liability of 307.286B on March31A/L".
Link: http://www.nasdaq.com/asp/quotes_sec.asp...
DO YOUR OWN DUE DILLIGENCE....
DO NOT RELY ON MY OWN ESTIMATES DUE TO OTHER UNCERTAINTIES
Lehman Likes the Way Its Bankruptcy Is Going
http://www.observer.com/2010/wall-street/lehman-likes-way-its-bankruptcy-going
Lehman Likes the Way Its Bankruptcy Is Going
http://www.observer.com/2010/wall-street/lehman-likes-way-its-bankruptcy-going
Lehman May Sell Archstone Assets to Affiliates, Filing Says
Sept. 22 (Bloomberg) -- Lehman Brothers Holdings Inc. may sell its largest real-estate asset, the apartment-complex owner Archstone it acquired in a $22 billion leveraged buyout, to two affiliates for “yet undefined consideration,” according to a court filing by Gerard Uzzi, a lawyer for Lehman creditors.
The two affiliates are Lehman Commercial Paper Inc. and Luxco, or Luxembourg Residential Properties Loan Finance S.a.r.l, according to a Sept. 20 filing by Uzzi, who represents a group of defunct Lehman creditors including hedge fund Paulson & Co.
http://www.businessweek.com/news/2010-09-22/lehman-may-sell-archstone-assets-to-affiliates-filing-says.html
Have you even seen anything related to the NOL with the 5 year carryback for Lehman.... WORTH BILLIONS!!!
shhhh don't tell anyone :P
If I remember correctly WAMU's NOL is 2.6 billion, what do you think Lehman's is... tens of billions.
Lehman:
Lehman to File New Reorganization Plan in 4th Quarter, Seeks March Approve
http://www.bloomberg.com/news/2010-09-22/lehman-to-file-new-reorganization-plan-in-4th-quarter-update1-.html
Lehman to File New Reorganization Plan in 4th Quarter, Seeks March Approve
http://www.bloomberg.com/news/2010-09-22/lehman-to-file-new-reorganization-plan-in-4th-quarter-update1-.html
Very Positive Spin on the THE STATE OF THE ESTATE...
Go Lehman!!!
State of the estate available here
http://www.sec.gov/Archives/edgar/data/806085/000119312510214406/dex991.htm
State of the estate available here
http://www.sec.gov/Archives/edgar/data/806085/000119312510214406/dex991.htm
I posted the whole article at http://lehmanlotto.blogspot.com/2010/09/lehman-unwinding-creates-blueprint.html
Go LEHMAN!!!
Lehman unwinding creates a blueprint
http://www.ft.com/cms/s/0/0f84cd9e-c4e1-11df-9134-00144feab49a.html
Bank ‘Bail-Ins’ May Be the Answer
http://www.nytimes.com/2010/09/20/business/20views.html?src=busln
With all due respect the 22nd falls on Wednesday.
No worries. It's been pretty quiet lately, but I have a feeling that is going to change real soon. We need to nail the Barclay's lawsuit.
BTW: I'm still holding too and I sleep well holding them :)
Go Lehman and Judge Peck!!!
Lehman doesn't act like a company that's liquidating
http://www.pittsburghlive.com/x/pittsburghtrib/business/s_700235.html
Lehman doesn't act like a company that's liquidating
http://www.pittsburghlive.com/x/pittsburghtrib/business/s_700235.html
Lehman doesn't act like a company that's liquidating
http://www.pittsburghlive.com/x/pittsburghtrib/business/s_700235.html
MOR AVAILABLE: Troy, would love to hear your thoughts as you are a good number cruncher :)
11444 9/17/2010
Monthly Operating Report for the Period of August 2010 filed by Shai Waisman on behalf of Lehman Brothers Holdings Inc.. (Waisman, Shai)
Debtor: Lehman Brothers Holdings Inc.
Related: none
Correct, Equity only has to wait decades :p