Any posts are my opinion, and should not be relied on for your investment decisions.
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I did not see CTs specifically, but the cayman joint venture seems to be aimed at securing future revenue for LBHI via LBHI2 pref stake in LBIE.
Future operating cash? Maybe.
LBHI has contributed portions of its interests in LBIE equity to a Cayman Joint Venture..
http://document.epiq11.com/document/getdocumentbycode/?docId=2440840&projectCode=LBH
More info regarding LBIE capital shares-
LBIE was incorporated on 10 September 1990 under the Companies Act 1985 as a company limited by shares. On 21 December 1992, it was re-registered as an unlimited company. It appears that this step was taken for US tax reasons. Re-registration of LBIE as an unlimited company enabled it to be treated as a branch of its then parent company for US tax purposes, thereby enabling losses in LBIE to be set off against profits in the parent.
The share capital of LBIE comprises 6,273,113,999 ordinary shares of $1 each, 2 million 5% redeemable Class A preference shares of $1000 each, and 5.1 million 5% redeemable Class B shares of £1000 each. All these shares, except for 1 ordinary share, are held by LBHI2. The two classes of preference shares result from capital restructurings of LBIE in 2006 and 2007, to which I shall refer below. The remaining ordinary share is held by LBL.
The sole function of LBHI2 was to act as the immediate holding company of LBIE.
Nov MOR-
http://document.epiq11.com/document/getdocumentbycode/?docId=3096948&projectCode=LBH
For LBHI only 11/30/16 restricted cash = $3.421B
For LBHI 11/30/16 ending free cash & investments = $235M
LBHI Estate found $49M (free cash & investments) from 11/1 to 11/30/16
11/30/16 Total restricted cash across all debtors (LBHI, LBSF, LCPI, others) = $4.497B
PLR 201228023
IRS released PLR 2012280233 concerning the federal income tax consequences of the liquidation of a consolidated group ("Taxpayer Group"). Taxpayer Group had a consolidated NOL and subsequently, Taxpayer and several of its affiliates ("Debtors") filed for Chapter 11 bankruptcy. Under the final bankruptcy plan ("Plan"), a plan trust was created and all of Taxpayer’s stock was cancelled. The plan trust provided for the issuance of one share to be issued and held for the benefit of each former shareholder consistent with their former entitlements. After the Plan’s effective date, Taxpayer, as the plan administrator, was to wind down and liquidate Debtor assets. Though unlikely, the Plan preserved the Taxpayer’s shareholders’ right to receive a distribution in proportion to their previous stockholdings. The Debtors will ultimately be dissolved.
The IRS ruled that, under Section 382(g), there was no owner shift where the stock held in the plan trust stock replaced Taxpayer’s stock. Further, claims retained and interests received by the Debtors’ creditors are not "stock" for purposes of Section 382.4
Section 382(l)(5)(A) is an exception to the Section 382 limitation on using NOLs and applies where a loss corporation is under jurisdiction of a court in a "title 11 or similar case" and when the loss corporation’s shareholders and "qualified creditors" (as a result of their status as shareholders and qualified creditors) after the ownership change own at least 50 percent of the loss corporation’s stock (measured by both voting power and value).
http://www.pepperlaw.com/publications/bankruptcy-plr-with-nol-preservation-result-2012-08-14/
You know that LBHI does not have a trustee, only LBI has a trustee.
Did you see the allowed amount? Looks pretty insignificant based on initial amounts expected to be made by LBIE and the remainder small guarantee portion being allowed as LBHI.
Mildly positive for CTs, guarantees are being upheld by the court and LBIE pref holders seeking to get into class 12.
GLTY
Its was specific to the following prefs (not CTs)...
ORDERED that, pursuant to section 502(b) of the Bankruptcy Code, portions of claim number 55829 relating to ISIN XS0215349357 and ISIN XS0229269856 are reduced to the
amounts listed on Exhibit 1
Yes, this surplus should have come back to LBHI IMO. Now DB is going to join in the UK legal fight.
JT99,
Appears Deutsche is buying up LBIE claims. See latest dockets
http://dm.epiq11.com/#/case/LBH/dockets
http://www.telegraph.co.uk/business/2016/10/11/lehman-brothers-creditors-to-be-spared-a-1bn-uk-tax-bill-after-c/
From the article...
Lehman’s underlying business was in fairly good health, and the European arm has an estimated surplus of more than £5bn, possibly rising above £7bn by the time the administration is complete.
Administrators at PwC have already paid back everything owed to creditors whose claims they have accepted, and are awaiting the green light to pay the extra dividends. The administration is due to run until at least November 2019, but could be extended for a sixth time if needed.
"We would hope and expect to work constructively with HMRC to develop an appropriate interim arrangement so that creditors do not face any unnecessary delays from the appeal as the joint administrators' plan for a distribution of interest next year takes shape,” said Russell Downs, joint administrator for LBIE and PwC partner.
Yeah I saw that as well. If they can resolve issues re: reserves between now and then, might be they last distro.
Looks like they were able to release some reserves as well.
See page 10. Link below...
http://dm.epiq11.com//LBH/Document/GetDocument/2838470
Docket # 53705 Filed Sep 28 2016 Operating Report : August 2016 Post-Effective Operating Report
http://dm.epiq11.com//LBH/Document/GetDocument/2838312
Based on MOR, at least $800M for next distro
Court allowing parties to breach after the APA was signed?
Nearly 8 years...So far, it appears that way.
Soup is good, especially in late winter/early spring.
LOL, you don't understand the SEC's role. Hint - its not to protect the little guys.
Thx Argus,
Based on the article, looks like its for all of F1...
"Under the terms of the deal, US media giant Liberty Media will buy Formula One for $8bn by acquiring 100 per cent of the shares of Delta Topco."
After this mostly reserves left. Next distro possibly the last one for LBHI?
Back to waiting. GLTUs
I'm going with 4Q, 2017- October/November
Do you think that's also why CTs were allowed to continue trading?
Just posted over on google board.
Only reply I have received so far was from PwC U.K. saying essentially that the status of the prefs held by LBHI2 is still unknown and outcome TBD in the UK courts.
LBHI and its joint venture may also get payment on the LBIE prefs owned by LBHI2 and LBL. These prefs were contributed to joint venture with Elliot, King Street and LBHI2,
Background-
The latest balance sheets have included the following note:
"If LBIE makes distributions on the Preferred Equity before aggregate distributions from the Joint Venture to the Funds and LBHI2 have reached GBP 2.2 billion (plus interest), then, in certain circumstances, LBHI2, Lux Finance and LBHI shall be obligated to make payments to preserve the economic terms of the transaction as if 100% of the Preferred Equity proceeds had been transferred by LBHI2 to the Joint Venture."
Our Capital Trust preferred rank from the prospectus-
"on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings"
Question - If LBIE makes a distribution on their preferred equity to the joint venture, then would capital trust holders understand that LBHI would be obligated to make payments to the non-debtor Capital Trust preferred holders that have parity rank to the LBIE preferred equity?
Any thoughts?
More info regarding LBIE capital shares-
LBIE was incorporated on 10 September 1990 under the Companies Act 1985 as a company limited by shares. On 21 December 1992, it was re-registered as an unlimited company. It appears that this step was taken for US tax reasons. Re-registration of LBIE as an unlimited company enabled it to be treated as a branch of its then parent company for US tax purposes, thereby enabling losses in LBIE to be set off against profits in the parent.
The share capital of LBIE comprises 6,273,113,999 ordinary shares of $1 each, 2 million 5% redeemable Class A preference shares of $1000 each, and 5.1 million 5% redeemable Class B shares of £1000 each. All these shares, except for 1 ordinary share, are held by LBHI2. The two classes of preference shares result from capital restructurings of LBIE in 2006 and 2007, to which I shall refer below. The remaining ordinary share is held by LBL.
The sole function of LBHI2 was to act as the immediate holding company of LBIE.
And who owns LCPI?
ANSWER LBHI
Excellent post mojo. 5 stars.
I don't know that the DOJ provides case(s) specific costs to the public, maybe some insight here...
https://www.justice.gov/doj/fy-2015-agency-financial-report
or here...
https://www.fiscal.treasury.gov/fsreports/rpt/combStmt/current_rpt.htm
This is a shelf registration and its good for years. This does not mean they will raise the full amount.
"Up to $173,638,778,550, or the equivalent thereof in any other currency, of these securities may be offered from time to time, in amounts, on terms and at prices that will be determined at the time they are offered for sale."
http://media.mofo.com/files/Uploads/Images/FAQShelfOfferings.pdf
Public companies do this all the time and leave them in place to take down capital as needed and when optimal.
US Treasury raised the $173B, not JPM.
sweeping stops?
also the trustee filled them out for each claim
after you click the link, expand the claim and look at the notes on the bottom right. It states
Remarks:
THIS CLAIM IS ALLOWED
Tax Form Received
OFAC Received
http://dm.epiq11.com/LBH/Claim#Claim=67753%2B21805%2B22122%2B22123&ClaimAmount=200000000&ClaimAmountClass=Unsecured&ClaimAmountClassInequalities=%3E&Scope=0&ds=true&ex=false&maxPerPage=25&page=1
Shoveling coal into the boiler, will be right over to post a new date-LOL
Also, All the executive shares do not vest until we have an acquisition.
Yeah, SNW you should just move on to other plays.
SASCO is not LAMCO. SASCO filed chap 11 in 09 case #09-10558. See bottom right debtor list here and pasted below...
http://dm.epiq11.com/LBH/Project
Debtors
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.
08-13888 10/03/2008 Lehman Brothers Special Financing Inc.
08-13893 10/03/2008 Lehman Brothers OTC Derivatives Inc.
08-13899 10/05/2008 Lehman Brothers Derivative Products Inc.
08-13900 10/05/2008 Lehman Commercial Paper Inc.
08-13901 10/05/2008 Lehman Brothers Commercial Corporation
08-13902 10/05/2008 Lehman Brothers Financial Products Inc.
08-13904 10/05/2008 Lehman Scottish Finance L.P.
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
09-10108 01/07/2009 Luxembourg Residential Properties Loan Finance S.a.r.l.
09-10137 01/09/2009 BNC Mortgage LLC
09-10558 02/09/2009 Structured Asset Securities Corporation
09-10560 02/09/2009 LB Rose Ranch LLC
09-12516 04/23/2009 LB 2080 Kalakaua Owners LLC Closed
09-17331 12/14/2009 Merit LLC
09-17503 12/22/2009 LB Somerset LLC Closed
09-17505 12/22/2009 LB Preferred Somerset LLC Closed
From KKR re how they are positioning in 2016...
http://www.kkr.com/global-perspectives/publications/spotlighting-2016%E2%80%99s-great-debates
From the article
"Consistent with this view, we also think we have entered a cyclical – and potentially a secular – bull market in Private Credit. Key to our thinking is that after a rash of disappointing earnings, leadership changes across the Financial Services sector (Europe in particular) and increased regulatory oversight (e.g., Basel III, TLAC), it is clear that most global wholesale banks will continue to move more aggressively to shrink their lending footprint and risk-based trading capital base in 2016. As a result, we think that new and attractive opportunities for non-traditional lenders, particularly those that embrace complexity and dislocation, have emerged across both the liquid and illiquid parts of the fixed income credit markets.
KKR looking to take advantage of private credit in 2016 and WMIH to help earnings of a company(ies).
Great points and I agree. Freddie was first on the risk share front as well.
RE: Case for releasing Freddie first
Freddie has also paid fro more to USTSY in relative terms as well.
Freddie - paid $26.829B on $71.336B = 37.6%
Fannie - paid $31.422 on $116.149 = 27.05%
over a 10% difference in return to USTSY
https://projects.propublica.org/bailout/list
LOL @ you
I know what I own
SECURITY DESCRIPTION: Lehman Brothers Holdings Capital Trust III, 6.375% Preferred Securities, liquidation amount $25 per share, guaranteed by Lehman Brothers Holdings Inc. (NYSE: LEH) (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee), redeemable at the issuer's option on or after 3/15/2008 at $25 per share plus accrued and unpaid dividends, maturing 3/15/2052, distributions of 6.375% ($1.59375) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record one business day prior to the payment date while the securities remain in book-entry form. The company has the right, at any time, to defer dividend payments for up to 20 consecutive quarters (but not beyond the maturity date). The trust's assets consist of the 6.375% Subordinated Deferrable Interest Debentures due 3/15/2052 which were purchased from the company using the funds generated from the sale of the trust preferred securities. See the IPO prospectus for further information on the trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below.
http://www.sec.gov/Archives/edgar/data/1053521/000104746903008715/a2105395z424b2.htm
You do realize this is for LBI?
It's not for LBHI, link here...
http://dm.epiq11.com/LBH/Docket
currently on docket #52538
Yes, we have been eligible for a distribution and it's been reallocated all along
See page 4, our portion is
(2) Distributions reallocated in accordance with Section 6.4 of the Plan