Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

"Update – Waterfall Application – Subordinated debt and other Affiliate relationship issues – Supreme Court Judgment – 17 May 2017
Today, the UK Supreme Court handed down its judgment in the Waterfall I Application and published a statement of its conclusions.

A copy of the judgment can be found here and a copy of the statement of conclusions can be found here.

Lord Neuberger, Lord Kerr and Lord Sumption read out their Statement of Conclusions this morning and a copy of the recording can be found here.

Should you have any queries regarding this update, please contact LBIE’s Communications and Counterparty Management team at [e-mail]."

https://www.pwc.co.uk/services/business-recovery/administrations/lehman/update-waterfall-application-subordinated-debt-and-other-affilliate-relationships-170517.html

***

"An individual's status as an affiliate is a fact-specific inquiry which must be determined by considering all relevant facts in accordance with Rule 405. The rule provides that the term "control" (including the terms "controlling," "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of management and the policies of a person, whether through the ownership of voting securities, by contract, or otherwise."

http://media.mofo.com/files/Uploads/Images/FAQRule144_145.pdf


"Lehman Brothers’ 2008 bankruptcy filing was the largest in U.S. history. This dispute involves the stock compensation of about 100 employees who asked the bankruptcy court for cash payments reflecting the face value of their restricted stock units. In ruling against the employees, the Second Circuit emphasized that restricted stock units won’t always be treated as securities in bankruptcy proceedings, because the inquiry is “likely to be fact-intensive.”

https://www.bna.com/lehman-employees-denied-n73014450514/

*** LBHI AND JPMCB SETTLEMENT AGREEMENT DATED 2/1/2017 - Docket 54683



“Settled Matters” means any and all Actions between the parties, including
without limitation, any and all Actions relating to the matters, facts and circumstances
described in, or arising from, or related in any way to any of the matters, facts and
circumstances underlying or related to the Actions and CDA Obligations described in
paragraphs C through H of the Background section of this Settlement Agreement, other
than the Unaffected Matters. For the avoidance of doubt, the Settled Matters include,
without limitation, the Tassimo Action, the LBSF Action, the 492nd Omnibus Objection,
the Securities Lending Objection, and the CDA Obligations, but exclude the Unaffected
Matters.



“Unaffected Matters” means claims filed by or on behalf of any JPMorgan Entity
or any affiliates or funds of a JPMorgan Entity, or in which any JPMorgan Entity or any
affiliates or funds of a JPMorgan Entity has an interest, that are not Settled Matters,
including without limitation claims filed by or on behalf of a JPMorgan Entity as agent,
for a customer or for a fund that it manages, claims relating to Canary Wharf, claims held
from time to time by a JPMorgan Entity’s distressed claims trading desk, and any other
claims that JPMorgan did not assert were covered by LBHI’s August and September
2008 guaranties and security agreements in favor of JPMCB’s subsidiaries and affiliates.

For the avoidance of doubt, claims relating to the LBSF Action are not Unaffected
Matters. Lehman reserves all objections and defenses to the Unaffected Matters."