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Lehman Bankruptcy Takes Big Step Toward an End
http://dealbook.nytimes.com/2011/08/30/lehman-bankruptcy-takes-big-step-toward-an-end/
It should be an interesting hearing. I'm looking forward to see how the debtors address the objections (about 17 of them), and whether Judge Peck will accept the DS as is, or request more disclosure. we will find soon enough. glta
the agenda of matters is available on epiq systems, docket #19561.
the DS hearing is on for tomorrow, 10am. Hopefully the transcript will become available quickly, or at least an article describing the highlights of the hearing. we will see how the Trustee's objections are received by J.Peck.
for those who follow the wamu case, Ed Sargent from SG has joined the party.
"#19543 8/26/2011 Application for Pro Hac Vice Admission filed by Edgar Sargent on behalf of UK Administration Companies. Filing fee collected, receipt #187529. (Hibbert, Stacey)"
i agree. even if the DS is approved, that's still a long way from plan confirmation
here's an interesting addition to the Law firms representing creditors (Susman Godfrey)
a cut and paste from the filing
1. As of the date hereof, Susman Godfrey represents in the Cases the creditors listed on Exhibit A hereto (together, the “Represented Parties”). Susman Godfrey will supplement this statement as necessary.
2. Each of the Represented Parties may hold, whether directly or indirectly, claims against and/or interests in certain of the Debtors arising out of agreements with certain of the Debtors, in law or equity. The specific nature and amount of these claims and/or interests have not yet been finally determined and may be set forth in proofs of claim or interest filed or to be filed in the Cases.
3. Each of the Represented Parties separately requested that Susman Godfrey represent them in connection with the Cases.
what's interesting here is that SG is the law firm that is representing the equity Committee in the WMI BK case (WAMU).
Docket #19499
thanks. the debtors filed updates to the DS, Plan, and response to objectors.
that's a good point about 10A.
they don't make it easy for an average investor, that's for sure.
the debtors went out of their way to avoid answering objections.
hopefully the trustee will file something in response.
yes, it's possible.
I was taking the debtors at their word, that no money is flowing from senior to junior creditors. If that is in fact the case, then I suspect that the trustee actually meant to object to distributions from junior creditors being given to seniors. this should be good for CTs.
I'm looking forward to a response from the trustee, but they might just address it verbally at the DS hearing.
Yes, the debtor is trying to delay some objections until plan confirmation. they are trying to get the DS approved with minimum disclosure.
regardless, we will find out soon enough.
it looks like the US Trustee did make a mistake when objecting to money flowing from senior to junior creditors
in the objection summary section for the Trustee, pg 22/61
the debtor summarizes the trustee's objection,
"6. The justification for the plan adjustments and the automatic reallocations of distributions, among others, from senior creditors to junior creditors;"
and the debtors response,
"6. This is a confirmation objection that should be deferred to the confirmation hearing. See Debtors’ Response ¶¶ 5 – 9. In addition, the Plan does not provide for reallocations of distributions from senior to junior creditors"
the debtors response to DS objections is available.
docket #19448
yes, i think this is good news as well. i understand this as more assets available for liquidation/distribution sooner.
yes, another good point. I remember when I read about the treatment of equity with this one share business, and it just didn't make sense to me then. why does the debtor want to preserve equity? i suspect that there are lots of hidden assets. which i believe is good news for equity. i was suspicious then, and i still am.
its a great objection, and the US Trustee has brought up some real issues that need to be addressed. The debtors might file a response to this, or even update the DS/Plan.
regardless, im looking forward to the DS hearing.
page 20, footnote 6,
"It is recognized that the Disclosure Statement provides that the existing stock and other
equity interests in one Debtor, namely LBHI, will be canceled on the Effective Date.
Disclosure Statement at X.C.2.a. The Disclosure Statement, however, also provides that
the holders of the “old equity” in LBHI will hold the same interests in the new Plan Trust
Stock in LBHI consistent with their former relative priority and economic entitlements.
Id. Thus, the former equity holders of LBHI will still hold equity in the new stock of
LBHI."
US Trustee's Objection, page 19,
"The Disclosure Statement Should Be Amended To Provide
Adequate Information Concerning The Formation Of The Plan
Trust And A Justification For The Plan Provisions That Permit
Equity Holders To Retain Their Interests In The Debtors When
General Unsecured Creditors Are Not Being Paid In Full Under
The Plan."
This is a great point on the trustees part, and i think it will force much needed clarity from the debtors. it sounds like the CTs should be getting a recovery.
great objection linda!
U.K. Rules for Investors in Lehman Fight
http://online.wsj.com/article/SB10001424053111904888304576471613543605664.html
this is the payout schedule for LBHI from the latest DS
I suspect this will change many more times
1 Priority Non-Tax Claims 100% Impaired, Entitled to Vote
2 Secured Claims 100% Impaired, Entitled to Vote
3 Senior Unsecured Claims 21.1% Impaired, Entitled to Vote
4A Senior Affiliate Claims 15.6% Impaired, Entitled to Vote
4B Senior Affiliate Guarantee Claims 15.2% Impaired, Entitled to Vote
5 Senior Third-Party Guarantee Claims 12.2% Impaired, Entitled to Vote
6A Convenience Claims 26.0% Impaired, Entitled to Vote
6B Convenience Guarantee Claims 17.0% Impaired, Entitled to Vote
7 General Unsecured Claims 19.9% Impaired, Entitled to Vote
8 Affiliate Claims 14.4% Impaired, Entitled to Vote
9A Third-Party Guarantee Claims other than those of the
Racers Trusts
11.5% Impaired, Entitled to Vote
9B Third-Party Guarantee Claims of the Racers Trusts 7.0% Impaired, Entitled to Vote
10A Subordinated Class 10A Claims 0% Impaired, Not Entitled to Vote,
Deemed to Reject
10B Subordinated Class 10B Claims 0% Impaired, Not Entitled to Vote,
Deemed to Reject
10C Subordinated Class 10C Claims 0% Impaired, Not Entitled to Vote,
Deemed to Reject
11 Section 510(b) Claims 0% Impaired, Not Entitled to Vote,
Deemed to Reject
12 Equity Interests in LBHI N/A Impaired, Not Entitled to Vote,
Deemed to Reject
lamco is definitely mentioned in the ad hoc's groups disclosure statement, including the use of NOLs to offset future income
here's a few paragraphs from the 12/15 DS
page 76/110
2. LAMCO
Subject to the discretion and direction of the Plan Administrator, LAMCO may
serve as asset manager for certain assets of the Consolidated Debtors under the Plan. Title and
ownership of the assets of the Debtors will not be transferred to LAMCO. Ownership and
ultimate decision-making authority with respect to each asset after the Effective Date will be
vested in the Consolidated Debtors.
page 94/110
a. Asset Dispositions and Transfers
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 Debtors’ business operations and disposes of certain Debtor’s
assets, subject to the potential application of section 382 of the IRC, as discussed below. The
transfer of assets by members of the LBHI Tax Group to other members of such Group,
including transfers to newly formed entities in order to create New Securities may also result in
the recognition of income as a result of such transfers, for example, when such transferred assets
or entities holding such assets are distributed or otherwise transferred outside the LBHI Tax
Group. LBHI’s NOL carryforward should also generally be available to offset any such income,
again subject to the potential application of Section 382 of the IRC as discussed below. See
section X.A.3.b.ii – “Internal Revenue Code Section 382 Limitations – Possible Application to
the LBHI Tax Group” of this Disclosure Statement.
yes i agree. i also think its typical for the debtors in bks to try to come to terms with the largest creditors first, then work they way down to the smaller, until they can get a plan approved. last week centerbridge filed an objection to the most recent plan, and i suspect as we approach the DS hearings, more objections will be filed. some of these creditors might own junior debt, and that's exactly what we need, funds with the dollars to litigate for the junior debt.
this is still a long way from plan confirmation.
from the article, it looks like the judge stopped discovery on the creditors that had proposed the alternate plans.
DJ Judge Approval Allows Lehman To Nudge Forward With Newest Plan
http://www.morningstar.co.uk/uk/markets/newsfeeditem.aspx?id=153856465978277
Lehman Again Asks Judge To Dismiss JP Morgan Countersuit
https://www.fis.dowjones.com/article.aspx?ProductIDFromApplication=10&aid=DJFDBR0020110719e77j000dx&r=Rss&s=DJFDBR
that's very interesting and positive for CTs, i think.
also the fact that the debtors are replacing equity for a piece of that one share in the plan trust is telling. I mean, it must take more effort and dollars to implement what is effectively a share swap, rather than just offer nothing to equity.
its a link that points to the most recent DS.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=10602&tid=262512&mid=262513&tof=1&rt=2&frt=2&off=1
i have prefs and CTs as well. hopefully some good news is coming. GLTA
nice action this morning. someone just became interested in CTs.
they filed a DS and PLAN again today. maybe there was an update.
docket #18204, 18205
yeah just read it, looks like it went through some translation software
although the cap trusts will receive a distribution, its being redirected to help pay senior creditors, according to all the plans so far.
so we're getting paid without actually receiving any money, imo.
Lehman says new bankruptcy plan gets wider support
http://www.reuters.com/article/2011/07/01/us-lehman-idUSTRE7601J920110701
Interesting message on scottrade news
DJ Washington Mutual Investors Agree To $208.5M Securities Fraud Suit Settlement -CNBC
Lehman Files New Creditor Payback Plan With Broader Support
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106290319dowjonesdjonline000196&title=lehman-files-new-creditor-payback-plan-with-broader-support
If Lehman knows what they're looking for, then I would guess they narrowed the search enough to satisfy the objection, but still produce useful information, imo.
bloomberg just posted an article about it.
Let's hope the search turns up something useful.
Goldman Deal to Deliver Documents to Lehman Approved by Judge
http://www.bloomberg.com/news/2011-06-28/goldman-deal-to-deliver-documents-to-lehman-approved-by-judge.html?cmpid=yhoo
Lehman to sell Toy Center for $700 million: report
http://www.cnbc.com/id/43554938
that makes sense. I knew that the disclosure statement hearings were postponed until further notice. So I was suprised to see the 7/20 date.
they are still fighting over disclosure procedures, how can there be a disclosure statement hearing? 7/20 is a busy day in court, but not for approval of the disclosure statement. it looks like something was mixed up.
yeah, some strange trades go through.
100K FQs were sold yesterday at 0.005
Court clears Lehman unit settlement with JPMorgan
http://finance.yahoo.com/news/Court-clears-Lehman-unit-rb-3288211558.html?x=0&.v=3
Notice of Withdrawal of Notice of Intent to Participate in Discovery Related to Plan Confirmation (related document(s)[16255]) filed by Harold S. Novikoff on behalf of J.P. Morgan Ventures Energy Corporation, J.P. Morgan (Suisse) SA, J.P. Morgan Securities Ltd., JPMorgan Securities Japan Co., Ltd., J.P. Morgan Securities Inc., J.P. Morgan Markets Limited, J.P. Morgan Clearing Corp., J.P. Morgan International Bank Limited, JPMorgan Chase Funding Inc., JPMorgan Bank Dublin PLC, JPMORGAN CHASE BANK, N.A.. (Novikoff, Harold)
docket #17983
Why would JPM withdraw from discovery?
Something must have changed in the new plan.
edit:
I meant to post a new message, its not directed at you hestheman