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Big thanks to Dan and Uhlmant. Appreciate and support everything you guys do.
Go Lehman Brothers!!!
Lehman May Pursue Claim on Barclay's 'Windfall' (Update1)
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/08/bloomberg1376-L0M6I30UQVI9-1.DTL
©2010 Bloomberg News
By Linda Sandler
April 9 (Bloomberg) -- A U.S. bankruptcy judge rejected a Barclays Plc bid to throw out Lehman Brothers Holdings Inc.'s motion to recover an alleged $11 billion "windfall" the bank made on the purchase of the firm's North American brokerage.
Barclays had argued that if the judge reopens the sale contract he previously approved, buyers for distressed bank assets will be scarce in the future. Lehman, which filed the biggest bankruptcy in U.S. history in 2008, claimed that new evidence from 60 depositions and 100,000 documents about Barclays' undisclosed windfall entitles the judge to reexamine the sale and make Barclays give back its gains.
"Today's hearing should be considered the opening arguments for the evidentiary hearing beginning April 26," U.S. Bankruptcy Judge James Peck said today at in his Manahattan courtroom, rejecting Barclays' request to dismiss the claim.
A court victory for New York-based Lehman would add money for creditors with claims estimated at $260 billion, augmenting the $50 billion that Chief Executive Officer Bryan Marsal has said he aims to raise within five years.
The fight pits creditors and customers of Lehman, which before it failed used accounting methods that concealed billions of dollars of risks, according to an examiner's report, against Britain's second-biggest bank. Barclays more than doubled its profit last year and reported a $4 billion gain on the brokerage in 2008.
Asset Transfers
"The court was not told about billions of dollars of asset transfers to Barclays at the time the brokerage was sold," Lehman lawyer Robert Gaffey told Peck at today's hearing
When Peck approved the Barclays purchase, he said the deal would help stabilize financial markets. Lehman, its creditors and the brokerage's trustee, James Giddens, sued Barclays last November as the markets rebounded, saying it made too much money on the brokerage. Barclays said it is still owed $3 billion, which Giddens is withholding.
"The judge has to somehow protect the idea of a sale order," Lynn LoPucki, a law professor at the University of California, Los Angeles, said in an interview. The ruling by Peck may mean that "General Motors or Chrysler could come in and set aside the sales that made them into post-bankruptcy companies. You're messing with the primal forces of nature."
'A Big If'
Lawyers for Barclays said in an April 5 filing in U.S. Bankruptcy Court in New York that "institutions that both had capital and were prepared to invest it had many opportunities to make substantial returns if -- and it was a big if -- the financial system recovered."
The London-based bank's acquisition may become costly if it loses or settles the lawsuits. Aside from amounts it might have to pay, its reported gain on the brokerage included the $3 billion it wants from Giddens, according to filings.
Marsal would also benefit from a Lehman victory. His Alvarez & Marsal LLC restructuring firm, paid $247 million in 17 months to liquidate Lehman, will earn a 0.175 percent bonus on all further amounts recovered for unsecured creditors, according to court filings.
Giddens wants $6.7 billion from Barclays to pay brokerage clients. That includes the $3 billion in assets that he's holding. The trustee has said that after transferring $92 billion owed to 110,000 customers in December, he may not have enough for hedge funds, banks and individuals trying to prove they have a right to be paid.
'Simply Seeking Relief'
"The trustee is simply seeking relief from the sale order to the extent that it could be construed as entitling Barclays to the disputed assets and the excess value in question," he said in a March 18 filing.
Peck will consider three lawsuits in all against Barclays, including one from Lehman creditors who have said they endorse efforts by the company and the trustee to get money from Barclays.
Barclays, the sole bidder for Lehman's brokerage, wouldn't have closed a deal that failed to give it "maximum downside protection and substantial upside potential," the bank said in the April 5 filing.
"If the trustee had wanted a different contract, he could have asked for it," Barclays said. "It would violate contract law and the Constitution to retroactively override the sale of assets to a third party in order to remedy a subsequently discovered shortfall in customer property."
Purchase Agreement
Giddens, with Lehman's advisers and creditors, agreed to the sale terms in a purchase agreement, sale order and so-called clarification letter, which gave 72,000 customers access to $40 billion in assets frozen in the bankruptcy, Barclays said.
Peck approved the sale, knowing that further details of the transaction would be spelled out later in the clarification letter, Barclays has said.
Lehman has accused Barclays of a "grab for billions in additional assets."
While Lehman directors were told the deal would be a "wash" for Barclays, which would take assets and liabilities of similar value, Lehman executives seeking jobs at Barclays gave the bank a secret $5 billion discount, Lehman said in a March 18 filing.
Before the sale closed, a similar amount of assets was added without telling the court, Lehman said, adding that these facts "could support a finding of bad faith or breach of fiduciary duty, or fraud on the court."
Transaction Terms Known
Barclays has said all the terms of the transaction were known by Lehman's advisers at the time of the sale.
"If the judge can say this is different, it does not apply to other cases, then Lehman may get relief from the sale order," LoPucki said.
Lehman, once the fourth-largest investment bank, sought court protection with assets of $639 billion and has been in bankruptcy for more than 18 months.
Lehman is represented in the litigation by Jones Day, Barclays's law firm is Boies Schiller & Flexner LLP and the Lehman creditors committee's lawyers are Quinn Emanuel Urquhart & Sullivan LLP.
The cases are In re Lehman Brothers Holdings Inc., 08- 13555, and James W. Giddens v. Barclays Capital Inc., 09-01732, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--Editors: John Pickering, Michael Hytha.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/08/bloomberg1376-L0M6I30UQVI9-1.DTL#ixzz0kcG2GTyM
Yes, I agree that is a big point for us.
I'm on the call too. Go Lehman Brothers!!!
Hi Dan, are you planning to be on the call tomorrow. If so, can you please keep us updated.
Thanks.
The Lehman family is having a reunion. Nice to see everyone back.
I hope you all updated your positions with Judge Peck regarding the EC.
Go Lehman Brothers!!!
Tomorrow's Court Agenda Docket: 8159
10:00AM
http://dm.epiq11.com/LBH/docket/Default.aspx?SearchCriteria=&DMWin=1c942b37-213f-4a3d-be49-d1d193460f21
Note: Tons of transfers today.
Citi Offers To Buy Back Lehman Notes Sold To Spanish Clients...
What a nice gesture... do you think they have value? lol... of course they do.
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201004080702dowjonesdjonline000431&title=citi-offers-to-buy-back-lehman-notes-sold-to-spanish-clients
MADRID -(Dow Jones)- Citigroup Inc. said Thursday it has agreed to buy back structured notes created by Lehman Brothers and sold to clients in Spain that later became nearly worthless when Lehman went bankrupt.
The New York bank's Spanish unit, Citibank Espana SA, is offering 55% of the nominal value of the EUR78 million it sold in Lehman notes, according to a press release.
Hundreds of clients that purchased the securities from Citi sued the bank in Spanish courts on charges that it sold a high-risk product aggressively to retail investors without adequately explaining the risks.
"It was sold as an alternative to long-term deposits, as a secure financial product," said Jordi Ruiz de Villa, a partner at Barcelona law firm Jausas, who together with Madrid law firm Zunzunegui advised 122 clients in the case against Citibank.
Ruiz de Villa said the Lehman products have a market value of somewhere between 20% and 30% of their nominal value.
Citi isn't the only bank in Spain that sold these products. Last month, Bankinter SA (BKT.MC) was ordered by a Spanish court to compensate some of the clients that bought Lehman Brothers products through the bank. Bankinter has said it will appeal.
According to Jausas' Ruiz de Villa, Deutsche Bank AG (DBK.XE) and Credit Suisse Group (CS) are also facing lawsuits for the sale of similar products to Spanish clients.
-By Christopher Bjork, Dow Jones Newswires; 34 91 395 8123;
christopher.bjork@dowjones.com
(END) Dow Jones Newswires
04-08-100702ET
Copyright (c) 2010 Dow Jones & Company, Inc.
Check this out...
http://money.cnn.com/quote/shareholders/shareholders.html?symb=LEHPQ&subView=institutional
Universal-Investment GmbH 38.83% 1,553,000 6,988,500 +1,551,447 +99,900.00%
Troy, Check this out...
http://money.cnn.com/quote/shareholders/shareholders.html?symb=LEHPQ&subView=institutional
Universal-Investment GmbH 38.83% 1,553,000 6,988,500 +1,551,447 +99,900.00%
Yes, but they have the same face value as the PQs 1000
Per your request.
LBHGP
Volume: 265.43 k
1.50 75000 OTO 15:05:03
2.16 100 OTO 13:23:43
2.18 100 OTO 13:00:37
1.30 35000 OTO 12:48:06
1.27 35000 OTO 12:46:58
2.18 230 OTO 12:19:15
1.30 40000 OTO 11:31:44
1.27 40000 OTO 11:29:58
1.30 40000 OTO 11:28:45
LBHGP huge volume... The big fish are here. Another 75,000
Hope it was smart money entering the building. Very intriguing.
120,000 now of LBHGP
http://abcnews.go.com/Business/wireStory?id=10298423
James Giddens, the trustee in charge of liquidating Lehman's brokerage and making sure customers receive their assets, as of January had identified about $6.7 billion of cash and securities that he said was wrongfully transferred to Barclays.
Good point. As Lehman Brothers debt continues to decrease we are starting to look more attractive to other companies.
This is great news. Thanks for posting that.
Here is my concern... I'm afraid they will pull a reverse split on all of the equity stocks. Just like AIG and AT&T.
Does anyone else have the same concern?
Again, just thinking out loud. Not saying it will happen, but it could.
Absolutely, they may be risky now, but they still have value. As the real estate market and the stock market improve these assets will no longer be classified as risky and they will appreciate in value.
lol, rest up for next week... we are meeting with Barclays next Friday 4/9/2010
Happy Easter!
Posted on the other board too. Lets get the message out to everyone...
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=10602&tid=258221&mid=258221&tof=1&frt=2
Crucial: Equity Committee
Send in your letters. We need representation.
As many have pointed out on this board... we need to get those letters into the Judge to form the Equity Committee. We need representation now.
Regardless if this was already factored in the reduction of the debt... it sure looks great sitting in our docket :)
Nice find!
Go Lehman!!!
I'm NOT going to say we are GOLDEN, but we are in much better shape now than we ever been.
I think that is a fair statement.
Reminder: Lehman Sees Creditor Claims Being Reduced To $260B From $819B
Tuesday 03/30/2010 11:48 AM ET - Dow Jones News
Related Companies
Symbol Last %Chg
LEHMQ 0.0996 -5.14%
As of 3:56 PM ET 3/31/10
By David McLaughlin
Of DOW JONES DAILY BANKRUPTCY REVIEW
Lehman Brothers Holdings Inc. (LEHMQ) estimates that the more than $800 billion in claims filed by creditors against the failed investment bank will ultimately be slashed to about $260 billion.
Lehman said in a regulatory filing that in its initial review of the 65,000 claims for payment, the total should be reduced to $605 billion from $819 billion based upon "clear errors, duplications and noncontroversial corrections that are appropriate."
Lehman also said its preliminary estimate of the total amount of claims ultimately allowed in the case will be about $260 billion. That includes claims filed by third parties and Lehman affiliates against Lehman's holding company as well as guarantee claims.
Lehman said in the filing with the Securities and Exchange Commission that the process for reviewing the claims "is an ongoing, intensive and laborious process."
"The amounts stated in this report are [Lehman's] best estimates at this time and, in the perspective of the extremely complex issues presented by these gargantuan cases, will be refined and revised," it said.
Lehman's collapse in September 2008 marked the largest bankruptcy case ever filed. Earlier this month, it unveiled its plan to repay creditors.
The proposal calls in part for establishing an asset management company that will oversee a portfolio of Lehman assets outside bankruptcy. The plan requires support from creditors and the New York judge overseeing the bankruptcy case.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
-By David McLaughlin, Dow Jones Daily Bankruptcy Review; 212-416-2018; david.mclaughlin@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/nae/al?rnd=b1eC2Vi2VAzQXHSdBPRc%2FQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
03-30-10 1148ET
Copyright (c) 2010 Dow Jones & Company, Inc.
JMAP, try not to let your emotions get in the way of your trading/investments. This is what the MMs feed off of. They want you to think the sky is falling and you need to get out.
The last trade of the day was a good example. In fact if you look at the time and sales in IHUB you will notice it's black? not green or red which is still a bunch of crap... since I have made buys and they come up as sells.
Hang tight there will be better days.
Disclaimer: This is only my personal opinion and you should do what is best for you.
Sorry relentless... I didn't mean to reply to your message.
Go Lehman!!!
Does anyone truly believe there are NO bids in the queue for most of the Lehman stocks right now.
Give me a break...
READ IT'S IN THE 8-K... not just a press release from some bimbo.
http://biz.yahoo.com/e/100329/lehmq.pk8-k.html
The review of the Adjusted Total Filed Claims is an ongoing, intensive and laborious process. The Debtors, for the purposes of the Plan, have made a preliminary estimate of the potential allowed amount of the Adjusted Total Filed Claims. It is the Debtors estimate that such amount will approximate $260 billion. Schedule 1 of Exhibit 99.1 attached hereto sets forth the basis of the Debtors estimate.
READ IT'S IN THE 8-K... not just a press release from some bimbo.
http://biz.yahoo.com/e/100329/lehmq.pk8-k.html
The review of the Adjusted Total Filed Claims is an ongoing, intensive and laborious process. The Debtors, for the purposes of the Plan, have made a preliminary estimate of the potential allowed amount of the Adjusted Total Filed Claims. It is the Debtors estimate that such amount will approximate $260 billion. Schedule 1 of Exhibit 99.1 attached hereto sets forth the basis of the Debtors estimate.
READ IT'S IN THE 8-K... not just a press release from some bimbo.
http://biz.yahoo.com/e/100329/lehmq.pk8-k.html
The review of the Adjusted Total Filed Claims is an ongoing, intensive and laborious process. The Debtors, for the purposes of the Plan, have made a preliminary estimate of the potential allowed amount of the Adjusted Total Filed Claims. It is the Debtors estimate that such amount will approximate $260 billion. Schedule 1 of Exhibit 99.1 attached hereto sets forth the basis of the Debtors estimate.
Call your broker and ask them why your order is NOT being filled.
Slow motion... very controlled buying going on here right now.
A premium will have to be paid to get back in... but I think you will be handsomely rewarded.
Yo Hammer, do you have any room for new sticky notes... Would like everyone to see this awesome news.
Lehman Says Unsecured Claims May Fall to $260 Billion (Update3)
March 29, 2010, 8:28 PM EDT
http://www.businessweek.com/news/2010-03-29/lehman-files-progress-report-analyzing-65-000-claims-update1-.html
March 30 (Bloomberg) -- Lehman Brothers Holdings Inc., which has been reviewing creditors’ demands for payment, said unsecured claims may fall to $260 billion as it rejects inappropriate claims, from more than $819 billion submitted, according to a regulatory filing today.
If Lehman succeeds in trimming the 65,000 claims, there will be more money for the remaining creditors who survive the review. Chief executive officer Bryan Marsal has said he may recover $40 billion to $50 billion from Lehman assets in the next five years.
“A review of claims both on a substantive basis and for purposes of plan classification is ongoing,” Lehman said in the filing.
Lehman, the investment bank liquidating in bankruptcy, said it made the filing to report its progress on analyzing its debts because there has been “substantial” trading of claims since the company outlined a reorganization plan on March 15 and claimants began to seek more details about the plan, sometimes requesting private meetings. The report aims to give equal access to all interested parties, Lehman said.
Disallowed claims include those filed without supporting documentation and assertions of secured claims without grounds, Lehman said in the filing.
Total unsecured claims filed include $696 billion in Lehman’s official register, plus sums inadvertently omitted from the records, according to the filing. The company reduced unsecured claims after “initial” analysis to $605 billion, and said further reviews may disallow many of those remaining.
Outstanding demands for payment include $99 billion in noteholder claims and $21 billion in guarantees of Lehman affiliates’ debt, according to the filing.
Guaranty Claims
Guaranty claims by third parties of affiliates were slashed by Lehman to $142 billion as of March, from $255 billion filed; the reorganization plan allows for $94 billion, it said. Lehman estimated guaranty claims filed by affiliates themselves at $224 billion and said its plan would allow for $21 billion.
Lehman said it still aims to file a disclosure statement explaining its plan on April 14. The company has said it might put all creditors in one category, reducing the payout to those who have stronger claims, if they don’t agree to its proposals.
Lehman, which sought court protection in September 2008 with assets of $639 billion, had 18 months under bankruptcy rules to file a reorganization plan. A judge allowed it to delay filing a disclosure document with details of its plan.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--With assistance from William Rochelle in New York. Editors: Mary Romano, Glenn Holdcraft.
To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
Sponsored Links
THIS IS HUGE NEWS!!! 819 billion submitted of unsecured claims may fall to 260 billion. Can anyone hear me :P
Lehman Says Unsecured Claims May Fall to $260 Billion (Update3)
March 29, 2010, 8:28 PM EDT
http://www.businessweek.com/news/2010-03-29/lehman-files-progress-report-analyzing-65-000-claims-update1-.html
March 30 (Bloomberg) -- Lehman Brothers Holdings Inc., which has been reviewing creditors’ demands for payment, said unsecured claims may fall to $260 billion as it rejects inappropriate claims, from more than $819 billion submitted, according to a regulatory filing today.
If Lehman succeeds in trimming the 65,000 claims, there will be more money for the remaining creditors who survive the review. Chief executive officer Bryan Marsal has said he may recover $40 billion to $50 billion from Lehman assets in the next five years.
“A review of claims both on a substantive basis and for purposes of plan classification is ongoing,” Lehman said in the filing.
Lehman, the investment bank liquidating in bankruptcy, said it made the filing to report its progress on analyzing its debts because there has been “substantial” trading of claims since the company outlined a reorganization plan on March 15 and claimants began to seek more details about the plan, sometimes requesting private meetings. The report aims to give equal access to all interested parties, Lehman said.
Disallowed claims include those filed without supporting documentation and assertions of secured claims without grounds, Lehman said in the filing.
Total unsecured claims filed include $696 billion in Lehman’s official register, plus sums inadvertently omitted from the records, according to the filing. The company reduced unsecured claims after “initial” analysis to $605 billion, and said further reviews may disallow many of those remaining.
Outstanding demands for payment include $99 billion in noteholder claims and $21 billion in guarantees of Lehman affiliates’ debt, according to the filing.
Guaranty Claims
Guaranty claims by third parties of affiliates were slashed by Lehman to $142 billion as of March, from $255 billion filed; the reorganization plan allows for $94 billion, it said. Lehman estimated guaranty claims filed by affiliates themselves at $224 billion and said its plan would allow for $21 billion.
Lehman said it still aims to file a disclosure statement explaining its plan on April 14. The company has said it might put all creditors in one category, reducing the payout to those who have stronger claims, if they don’t agree to its proposals.
Lehman, which sought court protection in September 2008 with assets of $639 billion, had 18 months under bankruptcy rules to file a reorganization plan. A judge allowed it to delay filing a disclosure document with details of its plan.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--With assistance from William Rochelle in New York. Editors: Mary Romano, Glenn Holdcraft.
To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
Sponsored Links
Lehman Says Unsecured Claims May Fall to $260 Billion (Update3)
March 29, 2010, 8:28 PM EDT
http://www.businessweek.com/news/2010-03-29/lehman-files-progress-report-analyzing-65-000-claims-update1-.html
March 30 (Bloomberg) -- Lehman Brothers Holdings Inc., which has been reviewing creditors’ demands for payment, said unsecured claims may fall to $260 billion as it rejects inappropriate claims, from more than $819 billion submitted, according to a regulatory filing today.
If Lehman succeeds in trimming the 65,000 claims, there will be more money for the remaining creditors who survive the review. Chief executive officer Bryan Marsal has said he may recover $40 billion to $50 billion from Lehman assets in the next five years.
“A review of claims both on a substantive basis and for purposes of plan classification is ongoing,” Lehman said in the filing.
Lehman, the investment bank liquidating in bankruptcy, said it made the filing to report its progress on analyzing its debts because there has been “substantial” trading of claims since the company outlined a reorganization plan on March 15 and claimants began to seek more details about the plan, sometimes requesting private meetings. The report aims to give equal access to all interested parties, Lehman said.
Disallowed claims include those filed without supporting documentation and assertions of secured claims without grounds, Lehman said in the filing.
Total unsecured claims filed include $696 billion in Lehman’s official register, plus sums inadvertently omitted from the records, according to the filing. The company reduced unsecured claims after “initial” analysis to $605 billion, and said further reviews may disallow many of those remaining.
Outstanding demands for payment include $99 billion in noteholder claims and $21 billion in guarantees of Lehman affiliates’ debt, according to the filing.
Guaranty Claims
Guaranty claims by third parties of affiliates were slashed by Lehman to $142 billion as of March, from $255 billion filed; the reorganization plan allows for $94 billion, it said. Lehman estimated guaranty claims filed by affiliates themselves at $224 billion and said its plan would allow for $21 billion.
Lehman said it still aims to file a disclosure statement explaining its plan on April 14. The company has said it might put all creditors in one category, reducing the payout to those who have stronger claims, if they don’t agree to its proposals.
Lehman, which sought court protection in September 2008 with assets of $639 billion, had 18 months under bankruptcy rules to file a reorganization plan. A judge allowed it to delay filing a disclosure document with details of its plan.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
--With assistance from William Rochelle in New York. Editors: Mary Romano, Glenn Holdcraft.
To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
Sponsored Links