Any posts are my opinion, and should not be relied on for your investment decisions.
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Lehman Brothers' brokerage
LBI not LBHI
You do understand that the ECap pref shares are subordinate to our LBHI Capital pref trust shares? Affiliate, subsidiary, or domestic our capital trust preferred shares rank senior to all global equity. Period
Only NOLs 2018 and beyond can be carried forward indefinitely
I blame LBHI for dragging this on and illegally breaking contracts
The J pref (66M offered) were depositary shares representing 1/100 of $2500 pref.
66,000,000 x $25 = 1.65B raised in 2008. No more left to be issued.
https://www.quantumonline.com/search.cfm?tickersymbol=LEHJQ*&sopt=symbol
https://www.sec.gov/Archives/edgar/data/806085/000104746908000953/a2182499z424b2.htm
The Capital Trust Pref rank sr vs the J pref
From the J prospectus-
Ranking. The Preferred Stock:
•
will rank senior to Lehman Brothers Holdings' common stock, and any other capital stock of Lehman Brothers Holdings ranking junior to the Preferred Stock, with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up; and
S-5
•
will rank equally with each other series of parity stock that Lehman Brothers Holdings has issued or may issue with respect to the payment of dividends and distributions upon liquidation, dissolution or winding-up.
The Preferred Stock ranks on an equal basis as to dividends and upon liquidation, dissolution or winding up with our 5.94% Cumulative Preferred Stock, Series C, 5.67% Cumulative Preferred Stock, Series D, 6.50% Cumulative Preferred Stock, Series F, and Floating Rate Cumulative Preferred Stock, Series G, which are currently outstanding, and will rank on an equal basis with our Non-Cumulative Perpetual Preferred Stock, Series H, and Non-Cumulative Perpetual Preferred Stock, Series I, when they are issued. We may from time to time, without notice to or consent from the holders of the depositary shares or the Preferred Stock, create and issue additional shares of preferred stock ranking on an equal basis to the Preferred Stock as to dividends and upon liquidation, dissolution or winding up. Any redemption of the depositary shares or Preferred Stock will be subject to the limitations described below under "Our Replacement Capital Covenant."
Nice amount of claims transferred to NationStar (Mr Cooper) on 12/1
Docket # 61535
Filed Dec 01 2022
Transfer Agreement FRBP. / Notice of Omnibus Transfer of Claims Pursuant To Fed.R.Bankr.P. 3001(e)(2) Transferors: U.S. Bank National Association, Assignor/Transferor (Claim No. 700030); U.S. Bank National Association, Assignor/Transferor (Claim No. 710028) To Nationstar Mortgage LLC, Assignee/Transferee filed by Nicole M. Fulfree on behalf of NATIONSTAR MORTGAGE LLC. (Fulfree, Nicole)
Debtor 08-13555 Lehman Brothers Holdings Inc.
VIEW
Docket # 61534
Filed Dec 01 2022
Transfer Agreement FRBP. / Notice of Omnibus Transfer of Claims Pursuant To Fed.R. Bankr. P. 3001(e)(2) Transfer Agreement 3001 (e) 2 Transferors: U.S. Bank National Association, Assignor/Transferor (Claim No. 700023); U.S. Bank National Association, Assignor/Transferor (Claim No. 710021) To Nationstar Mortgage LLC, Assignee/Transferee filed by Nicole M. Fulfree on behalf of NATIONSTAR MORTGAGE LLC. (Fulfree, Nicole)
Debtor 08-13555 Lehman Brothers Holdings Inc.
VIEW
Docket # 61533
Filed Dec 01 2022
Transfer Agreement FRBP. / Notice of Omnibus Transfer of Claims Pursuant To Fed.R.Bankr.P. 3001(e)(2) Transfer Agreement 3001 (e) 2 Transferors: U.S. Bank National Association, Assignor/Transferor (Claim No. 710020); U.S. Bank National Association, Assignor/Transferor (Claim No. 710022) To Nationstar Mortgage LLC, Assignee/Transferee filed by Nicole M. Fulfree on behalf of NATIONSTAR MORTGAGE LLC. (Fulfree, Nicole)
Debtor 08-13555 Lehman Brothers Holdings Inc.
VIEW
Docket # 61532
Filed Dec 01 2022
Transfer Agreement FRBP. / Notice of Omnibus Transfer of Claims Pursuant to Fed.R.Bankr.P. 3001(e)(2) Transfer Agreement 3001 (e) 2 Transferors: U.S. Bank National Association, Assignor/Transferor (Claim No. 700021); U.S. Bank National Association, Assignor/Transferor (Claim No. 710019) To Nationstar Mortgage LLC, Assignee/Transferee filed by Nicole M. Fulfree on behalf of NATIONSTAR MORTGAGE LLC. (Fulfree, Nicole)
Debtor 08-13555 Lehman Brothers Holdings Inc.
VIEW
Docket # 61531
Filed Dec 01 2022
Transfer Agreement FRBP. / Notice of Omnibus Transfer of Claims Pursuant to Fed.R.Bankr.P. 3001(e)(2) Transfer Agreement 3001 (e) 2 Transferors: U.S. Bank National Association, Assignor/Transferor (Claim No. 700114); U.S. Bank National Association, Assignor/Transferor (Claim No. 710088) To Nationstar Mortgage LLC, Assignee/Transferee filed by Nicole M. Fulfree on behalf of NATIONSTAR MORTGAGE LLC. (Fulfree, Nicole)
Debtor 08-13555 Lehman Brothers Holdings Inc.
VIEW
Docket # 61530
Filed Dec 01 2022
Transfer Agreement FRBP. / Notice of Omnibus Transfer Of Claims Pursuant To Fed.R.Bankr.P. 3001(e)(2) Transfer Agreement 3001 (e) 2 Transferors: U.S. Bank National Association, Assignor/Transferor (Claim No. 710135) To Nationstar Mortgage LLC, Assignee/Transferee filed by Nicole M. Fulfree on behalf of Nationstar Mortgage LLC. (Fulfree, Nicole)
Debtor 08-13555 Lehman Brothers Holdings Inc.
Today was the date for the distro. if the POR were to close, it could not happen until after today IMO
TD U.S. shows the CTs on the OTC
https://www.investopedia.com/terms/o/otc.asp
Looks like min bid size has to be for 10K shares
Some vol on -
LEHKQ vol 400
LEHLQ vol 1
This was completed in late 2021
Voluntary Final Distribution
The United States Bankruptcy Court for the Southern District of New York (the “Court”) has approved a process to provide certain creditors with a single, final Distribution on their Allowed Claims (the “Final Distribution”). The Final Distribution will allow the vast majority in number of LBHI’s creditors to end their thirteen-year involvement in these cases, and provide creditors with the opportunity to receive a Final Distribution potentially years ahead of when they otherwise would receive Distributions under the Plan.
Satisfied IN FULL
Brokerage, not the holding company...yet
https://www.reuters.com/markets/us/after-14-years-lehman-brothers-brokerage-ends-liquidation-2022-09-28/
LBHI CFO got an additional title in March of this year (2022) - COO Chief Operating Officer
https://www.linkedin.com/in/kristine-dickson-2a15494
9/24 to 9/30 looking at past filings. Yeah, most on 9/27
Also, plan trust staying current on SEC filings-
https://www.sec.gov/cgi-bin/browse-edgar?CIK=0000806085&owner=exclude&action=getcompany&Find=Search
Looks like LBI (not LBHI) sch to discharge trustee on 9/28
Wednesday, September 28, 2022
10:00 AM
08-13555-scc Lehman Brothers Holdings Inc. Ch. 11
Adversary proceeding: 08-01420-scc Lehman Brothers Inc. et al
Omnibus Hearing
Adversary proceeding: 08-01420-scc Lehman Brothers Inc. et al
Doc# 15406 Application for Final Professional Compensation / Final Application of Hughes Hubbard & Reed LLP for (I) Final Allowance of Compensation for Services Rendered and Reimbursement of Actual and Necessary Expenses Incurred from September 19, 2008 Through July 31, 2022, (II) Release of Remaining Hold Back, and (III) Related Relief.
Adversary proceeding: 08-01420-scc Lehman Brothers Inc. et al
Doc# 15407 Motion to Authorize / Trustees Motion for Order Discharging Trustee, Canceling His Bond, Closing the Estate, and Granting Related Relief
https://www.nysb.uscourts.gov/calendars/scc.html
LBHI is paying ECAPs that are subordinate to us. LBHI is likely paying its Joint Venture friends in the Caymans who hold ECAPs too.
CTs are Sr. to ECAPs These entities hold pref shares, not the subordinate debt. THEY SHOULD NEVER HAVE BEEN PAID A CENT BEFORE OUR CTs
See pg 17-
https://document.epiq11.com/document/getdocumentbycode?docId=4069169&projectCode=LBH&source=DM
Note 6 – Legal Proceedings (continued)
LBHI has settled with entities which in aggregate
hold approximately 16.8% of the ECAPS. The
agreements provide for those holders’ proportional
share of the cash flows at issue to be shared as
follows: 16.19% to such holders and 83.81% to
LBHI.
Good to hear from you too JH. Hope you are doing well
LBIE’s distributions to the Shareholder
Payment of the fourth preferred equity distribution, totalling
£93m, was made on 14 October 2021. To-date, this brings total
distributions to the Shareholder to £337m.
https://www.pwc.co.uk/business-recovery/administrations/lehman/lbie_27th_progress_report.pdf
LBIE soon to be fully solvent and to be managed as a going concern for the benefit of the Shareholder (LBHI2 pref owned by LBHI)
lbie_27th_progress_report.pdf (pwc.co.uk)
From pg 3
Outstanding matters and exit from Administration Progress continues to be made towards reaching the point at which the Administration can be concluded. However, there remain a handful of important ongoing interactions with counterparties and the courts (which have been impacted to a greater or lesser extent by the Covid-19 situation with certain matters taking longer to be resolved). Over the course of LBIE's Administration, the Administrators have successfully returned over £23bn of custodied assets and associated Client Money to clients under several consensually agreed arrangements or on a bilateral basis. Therefore, the Administrators have concluded that LBIE's FCA permissions are no longer required and on 26 January 2022 the FCA confirmed receipt of LBIE's application to cancel its regulatory permissions. The FCA has 6 months by statute to act on the application which could be extended to one year, if the application is deemed incomplete. At the appropriate time, the Administrators anticipate that the Administration will in due course be brought to an end following an application under paragraph 79 of Schedule B1 to the 1986 Act and that the Company will be returned to the full control of its directors. With this in mind, it is anticipated that the directors will assume responsibility for long-tail asset recovery for the benefit of the Shareholder as the Administration draws to a close. Managing the affairs of the Company continues to sit with the Administrators until such time as LBIE exits in Administration; and is returned fully as a solvent entity to the control of directors to be managed as a going concern for the benefit of the Shareholder.
6/6 lots of motions by LBHI
The question is which affiliates does LBHI own claims in and are those affiliates in run-off mode with no cash available. Best way to monetize is via equity
Remember LBHI holds/bought $31.1b in claims
redisnieurt, you do realize that these CT shares are restricted from trading right?
So, no reason to 'pied piper' anything here
Thoughts and prayers with you JH. You'll get through this rough time.
Docket 61102, pg 12
April 1, 2021
(3) LBHI is the holder of Allowed Claims against itself of approximately $31.1 billion, including: $1.2 billion of Class 3 Claims, $25.3 billion of Class 4A Claims, $0.6 billion
of Class 4B Claims, $0.2 billion of Class 5 Claims, $0.6 billion of Class 7 Claims, $1.2 billion of Class 9A Claims, and $1.9 billion of Class 9B Claims
Thanks JH, always good to hear from you. Hope all is well and good for you too.
Exactly, all the subs have been liquidated (see "closed" list below). Now the parent reorg time...
Case No. Date Filed Debtor Status
08-13555 09/15/2008 Lehman Brothers Holdings Inc.
08-13600 09/16/2008 LB 745 LLC Closed
08-13664 09/23/2008 PAMI Statler Arms LLC Closed
08-13885 10/03/2008 Lehman Brothers Commodity Services Inc. Closed
08-13888 10/03/2008 Lehman Brothers Special Financing Inc. Closed
08-13893 10/03/2008 Lehman Brothers OTC Derivatives Inc. Closed
08-13899 10/05/2008 Lehman Brothers Derivative Products Inc. Closed
08-13900 10/05/2008 Lehman Commercial Paper Inc. Closed
08-13901 10/05/2008 Lehman Brothers Commercial Corporation Closed
08-13902 10/05/2008 Lehman Brothers Financial Products Inc. Closed
08-13904 10/05/2008 Lehman Scottish Finance L.P. Closed
08-13905 10/05/2008 CES Aviation LLC Closed
08-13906 10/05/2008 CES Aviation V LLC Closed
08-13907 10/05/2008 CES Aviation IX LLC Closed
08-13908 10/05/2008 East Dover Limited Closed
09-10108 01/07/2009 Luxembourg Residential Properties Loan Finance S.a.r.l. Closed
09-10137 01/09/2009 BNC Mortgage LLC Closed
09-10558 02/09/2009 Structured Asset Securities Corporation Closed
09-10560 02/09/2009 LB Rose Ranch LLC Closed
09-12516 04/23/2009 LB 2080 Kalakaua Owners LLC Closed
09-17331 12/14/2009 Merit LLC Closed
09-17503 12/22/2009 LB Somerset LLC Closed
09-17505 12/22/2009 LB Preferred Somerset LLC Closed
Lehman had lots of pref series, why just the J's?
https://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=LEHMQ
Its is interesting that the Js are not redeemable until 2/2023..
Our Replacement Capital Covenant
At or prior to the initial issuance of the Preferred Stock, we will enter into a replacement capital covenant relating to the depositary shares and the Preferred Stock. The replacement capital covenant only benefits holders of covered debt, as defined under the "Certain Terms of the Replacement Capital Covenant," and is not enforceable by holders of the depositary shares or the Preferred Stock. However, the replacement capital covenant could preclude us from redeeming or purchasing depositary shares or shares of Preferred Stock at a time we might otherwise wish to do so.
In the replacement capital covenant, we covenant not to redeem or purchase, and to cause our subsidiaries not to redeem or purchase, the depositary shares or shares of Preferred Stock before February 15, 2023 (or such later date as we may determine if we decide to extend the term of the replacement capital covenant) except to the extent (i) during the 6 months prior to such redemption or purchase, we have
received net proceeds in the amount specified in the replacement capital covenant from the sale of securities that have equity-like characteristics that are the same or more equity-like than the applicable characteristics of the depositary shares and the Preferred Stock at the time of such redemption or purchase (any such securities, "replacement capital securities") or (ii) the depositary shares and the Preferred Stock are exchanged for consideration that includes common stock with a market value of at least 75% of the aggregate liquidation preference of the Preferred Stock or at least an equal aggregate liquidation preference or principal amount of replacement capital securities other than common stock, or a combination thereof.
See "Description of the Preferred Stock—Redemption or Repurchase Subject to Restrictions" for further information about redemptions or repurchases of the depository shares or shares of Preferred Stock.
New Operating report is out - LBHI spending $9M for operating expenses in July
Docket 61306
JULY 1, 2021 – JULY 31, 2021
Uses of Cash
Operating Expenses (a) (0) (4) (4)
Non-Operating (5) - (5)
Maybe allowed someone to cover a short
What did LBHI Covenant not to allow, so long as any trust securities remain outstanding?
Suggest you read the Important Covenants
Important Covenants Of Lehman Brothers Holdings
In the guarantee, Lehman Brothers Holdings will covenant that, so long as any trust securities remain outstanding, if:
•
there shall have occurred any event of default under the indenture,
•
Lehman Brothers Holdings shall be in default with respect to its payment of any obligations under the guarantee, or
•
Lehman Brothers Holdings shall have given notice of its election to defer interest payments and shall not have rescinded such notice, and while such interest is deferred,
then Lehman Brothers Holdings will not, and will not permit any subsidiary to:
•
declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of Lehman Brothers Holdings' capital stock, or
•
make any payment of principal, interest or premium, if any, on or repay, repurchase or redeem any debt securities of Lehman Brothers Holdings that rank on a parity with or junior in interest to the junior subordinated debt securities or make any guarantee payments with respect to any guarantee by Lehman Brothers Holdings of the debt securities of any subsidiary of Lehman Brothers Holdings if such guarantee ranks on a parity with or junior in interest to such junior subordinated debt securities, other than
•
dividends or distributions in common stock of Lehman Brothers Holdings,
•
payments under the guarantee made by Lehman Brothers Holdings in respect of the trust securities of the trust,
•
any declaration of a dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto, and
•
purchases of common stock related to the issuance of common stock or rights under any of Lehman Brothers Holdings' benefit plans.
LOl, they'll ship the promo video
This is CGI...not real