LBHI signed their August and September 2008 guaranties and security agreements prepetition.
Pre December 6, 2011, a deal was cut to contractually let LBHI’s creditors have the value of the CTs/TRuPS BNYM's Trusts (class 10ABC reallocations) and the value of the UK's ECAPS partnerships.
The CTs/TRuPS and ECAPS guarantees gives them the ability to receive payments without going thru the trusts or parnerships, respectively. This is why a subset of the ECAPS were given allowed claims (payments on their principal balance) on June 22 and July 12 of 2016 (see my previous posts).
JPMCB is holding LBHI's TRuPS and UK's ECAPS (Global certificate is in the name of a JPMCB affiliate [initial limited partner]) guarantee allowed claims by way of "Unaffected Matters" (The new style curve ball that the Debtors did not anticipate).
To deny the TRuPS and ECAPS back interest confirms that LBHI is in a wind-down state!
From the Plan Administrator's lips to our ears!
"The relief requested will enable LBHI’s creditors to realize the value of those five partnerships to which they are contractually entitled."
*** prepetition prepetition prepetition
LBHI signed their August and September 2008 guaranties and security agreements prepetition.
"It will ensure that both LBHI and the holders of the ECAPS remain in the economic positions and recover in the priorities to which they contractually agreed prepetition, preventing a windfall to third parties at the expense of creditors of LBHI."
*** From Docket 57036
"Lehman Brothers Holdings Inc. (“LBHI”), as Plan Administrator under the Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. and Its Affiliated Debtors (the “Plan”)1 for the entities in the above-referenced chapter 11 cases (the “Chapter 11 Estates”), files this motion and respectfully represents: Relief Requested 1. By this Motion, the Plan Administrator requests authority to cause LBHI to issue preferred stock so that such stock is available to substitute for equity securities (the “ECAPS”) previously issued by five non-debtor partnerships. The relief requested will enable 1 Capitalized terms used but not defined herein have the meanings ascribed to such terms in the Plan. 08-13555-scc Doc 57036 Filed 11/21/17 Entered 11/21/17 18:21:29 Main Document Pg 4 of 19 2 WEIL:\96296832\22\58399.0011 LBHI’s creditors to realize the value of those five partnerships to which they are contractually entitled. It will ensure that both LBHI and the holders of the ECAPS remain in the economic positions and recover in the priorities to which they contractually agreed prepetition, preventing a windfall to third parties at the expense of creditors of LBHI."
AI
