Lehman Brothers Financial SA (LEHNQ)

[inesdefilia]

08-13555-scc Doc 55609 Filed 06/21/17 Entered 06/21/17 12:32:29 Main Document
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OBJECTION OF CLAIMANTS SYLVIA VEGA-SUTFIN,
MICHELLE SEYMOUR, CHERYL MCNEIL, LINDA HOWARD-JAMES,
ISABEL UAJARDO AND DENISE COLOMBO TO MOTION OF LEHMAN
BROTHERS HOLDINGS INC. PURSUANT TO FED. R. BANK. P. 9019 AND
11 U.S.C. § 105(A) FOR ENTRY OF ORDER (A) APPROVING RMBS
SETTLEMENT AGREEMENT AND OTHER REQUESTED RELIEF




"It appears that under the terms of the Settlement Agreement, the Plan
Administrator may choose which LBHI Debtor to assign liability for the RMBS Covered Loan
Claims. There is a conflict in that the Plan Administrator has not and will not disclose how the
liability for the Covered Loan Claims will be allocated among the various LBHI Debtors. The
Plan Administrator is a fiduciary for each LBHI Debtor, and in that respect, owes a duty to each
LBHI Debtor to minimize the claims asserted against it. In the absence of disclosing to the
creditors of the each LBHI Debtor how the RMBS Covered Loan liability will be assigned and
how each LBHI Debtor’s payout to creditors will be affected, the proposed RMBS Settlement
cannot be in the paramount interest of creditors.
Claimants’ objection to the Motion and RMBS Settlement Agreement can be resolved in
one of two ways. The Plan Administrator can amend the proposed Settlement Agreement to
exclude BNC’s estate from any liability relating to the RMBS Covered Loan Claims, including
any guaranty or indemnification claims by the related LBHI Debtors; or, alternatively, the Plan
Administrator can provide written assurances that BNC will not be liable for the RMBS Covered
Loan Claims, or the guaranty and indemnification claims from the related LBHI Debtors.
Absent such amendment or assurances, the BNC estate risks turning from a 100% payout estate
as promised in the Plan, to zero percent plan at the discretion of the Plan Administrator. "