Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

To: Bruce Alexander Mackay
RSM Restructuring Advisory LLP
as Joint Liquidator of LB GP No.1 Ltd

From: Rickey M Gregory

Date: Friday, December 29, 2017 4:58 AM

Subject: LEHMAN BROTHERS HOLDINGS INC., AS PLAN ADMINISTRATOR RESPONSE TO QUESTIONS RECEIVED FROM CREDITORS

Mr. Mackay:

I was not able to find the answers to the three questions below in
2017. However, I look forward to 2018.

Regards,

Rickey M Gregory

1) Are LBHI's TRuPS prospectuses and guarantees (security law
contracts) still active and enforceable?

a) If yes, is LBHI's TRuPS back interest being reallocated to higher
LBHI classes?

b) I hold all four of LBHI's TRuPS below. Why have I not received a
back interest payment like the ECAPS Preferred Securities holders
below (We share the same Guarantees)?

2 ) *** "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defer interest payments and shall not have rescinded such notice, and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:

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"

https://www.sec.gov/Archives/edgar/data/806085/000104746905000357/a2149684z424b2.htm

3) *** "Based on relevant prospectuses..."
February 26, 2014

LEHMAN BROTHERS HOLDINGS INC., AS PLAN ADMINISTRATOR

RESPONSE TO QUESTIONS RECEIVED FROM CREDITORS


The reader should refer to the respective documents referenced herein.
Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the
Modified Third Amended Joint Chapter 11
Plan of Lehman Brothers Holdings Inc. and Its Affiliated Debtors (the
“Plan”). The response below is not
provided for and should not be relied upon for investment guidance.
The response is subject to change
from time to time, without prior notice.

(1) Are the holders of the following securities (the “Trust Preferred
Securities”) likely to receive

any recoveries?

Ticker Cusip Number Issuer/Trust
LEHKQ 52519Y209 Lehman Brothers Holdings Capital Trust III
LEHLQ 52520B206 Lehman Brothers Holdings Capital Trust IV
LHHMQ 52520E200 Lehman Brothers Holdings Capital Trust V
LEHNQ 52520X208 Lehman Brothers Holdings Capital Trust VI

Response: The Trust Preferred Securities were issued by the non-Debtor
entities identified above (the “Trusts”). Based on relevant
prospectuses, the sole assets of the Trusts were certain
subordinated debt securities (the “Subordinated Securities”) issued by
Lehman Brothers Holdings Inc. (“LBHI”). Under the Plan, claims against
LBHI on account of the Subordinated Securities have been classified in
LBHI Class 10B. Based on the 2013+ Cash Flow Estimates filed on July
23, 2013 [ECF No. 38954], it is unlikely that the Trusts will receive
any Distributions from LBHI on account of their class 10B claims. LBHI
is not aware of any other assets currently owned or
expected to be realized by the Trusts.

4) *** LBHI's ECAPS allowed claims payment plan: docket 41667

If you want to look at the current LBHI's ECAPS allowed claims payment
plan review docket 41667. Go to the section in the docket that list
the ECAPS claim numbers for various holders (Exhibit A ) and use EPIQ
to view a particular claim number. Most claim numbers will show a
separate entry for principal and back interest. The principal and/or
back interest may be an allowed claim. Perhaps in class 4a or class 7
or class 6 (if less than $50,000). Maybe the ECAPS holders had an
option to select their principal or back interest to be an allowed
claim.


Docket 41667 for ECAPS

"16. LBH Plc was not liable for any Funded Distributions or Unfunded
Distributions as of the Commencement Date. There is no evidence that
the Issuers failed to make any required Distribution through the
Commencement Date. There is no evidence that the 08-13555-jmp Doc
41667 Filed 12/20/13 Entered 12/20/13 17:38:58 Main Document Pg 10 of
194 8 US_ACTIVE:\44390121\8\58399.0011 Issuers had funds sufficient to
make Funded Distributions subsequent to the Commencement Date.
Accordingly, LBH Plc may be liable for Unfunded Distributions from the
Commencement Date through, at the latest, June 22, 2010, when the
Issuers dissolved and the LBH Plc Guarantees terminated. See
Prospectuses at 28-31. 17. LBH Plc is not liable for the Redemption
Amounts. The Redemption Amounts were due from the Issuers only in the
event of a redemption of the Preferred Securities. See Prospectus I at
9-10; Prospectus II at 7-8. There is no evidence that the Preferred
Securities upon which the Claims are based were ever redeemed.
.
.
.
In the interim, LBHI is required by the Plan to maintain a reserve
based on the aggregate filed amount of the Claims. Plan at ¶ 8.4. The
Claims appear to have been filed in amounts that equal or exceed the
Claimants’ notional investment in the Preferred Securities: an
aggregate amount in excess of $52 million. See Clack Declaration at ¶
7. Assuming, arguendo, that LBHI could be liable for the Claims,
LBHI’s maximum liability for the Claims would be limited to LBH Plc’s
Maximum Liability: an aggregate amount of less than $6.5 million. See
id. Accordingly, the Claims are overstated by at 08-13555-jmp Doc
41667 Filed 12/20/13 Entered 12/20/13 17:38:58 Main Document Pg 12 of
194 10 US_ACTIVE:\44390121\8\58399.0011 least $45.6 million. Under
such circumstances, it would be prejudicial to LBHI’s allowed
creditors to require LBHI to maintain reserves based on the filed
amounts of the Claims. RESERVATION OF RIGHTS 22. LBHI continues to
dispute that it has any liability for the Claims. Further, LBHI does
not concede that LBH Plc’s Maximum Liability represents LBH Plc’s
actual liability to the Claimants. Similarly, LBHI does not concede
that if it has liability for the Claims, such liability equals LBH
Plc’s Maximum Liability. The Plan Administrator reserves its rights to
prosecute the Objections and object to any of the Claims on any other
basis as to which the Court does not grant the relief requested
herein. LBHI also reserves its rights to seek further reductions to
the Claims. NOTICE 23. No trustee has been appointed in these Chapter
11 Cases. The Plan Administrator has served notice of this objection
on (i) the United States Trustee for Region 2; (ii) the Securities and
Exchange Commission; (iii) the Internal Revenue Service; (iv) the
United States Attorney for the Southern District of New York; (v) each
claimant listed on Exhibit A; and (vi) all other parties entitled to
notice in accordance with the procedures set forth in the second
amended order entered on June 17, 2010 governing case management and
administrative procedures for these cases [ECF No. 9635]. The Plan
Administrator submits that no other or further notice need be
provided. 24. No previous request for the relief sought herein has
been made by the Plan Administrator or the Chapter 11 Estates to this
or any other Court. 08-13555-jmp Doc 41667 Filed 12/20/13 Entered
12/20/13 17:38:58 Main Document Pg 13 of 194 11
US_ACTIVE:\44390121\8\58399.0011 WHEREFORE the Plan Administrator
respectfully requests that the Court grant the relief requested herein
and such other and further relief as is just. Dated: December 20, 2013
New York, New York /s/ Garrett A. Fail Peter D. Isakoff Garrett A.
Fail WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, New York
10153 Telephone: [phone] Facsimile: [phone] Attorneys
for Lehman Brothers Holdings Inc. and Certain of Its Affiliates"

5) *** How to calculate LBHI's Preferred Securities back interest for
Unfunded Distributions:

See Docket 41668

08-13555-jmp Doc 41668 Filed 12/20/13 Entered 12/20/13 17:42:12 Main
Document Pg 1 of 4 Declaration of Holley A. Clack with A & M

6) *** "District Judge Hart restoring the Company to the Register of
Companies."

From Docket 41667 for ECAPS below:

"Accordingly, LBH Plc may be liable for Unfunded Distributions from
the Commencement Date through, at the latest, June 22, 2010, when the
Issuers dissolved and the LBH Plc Guarantees terminated. See
Prospectuses at 28-31."


Read 3.19 from the link below:

"3.19 At a hearing on 20 January 2017 in the Central London County
Court an order was made by District Judge Hart restoring the Company
to the Register of Companies. The restoration was effective 3 February
2017."

Note: The ECAPS earn another year of interest on 2 February 2018. The
ECAPS Guarantees are good effective 3 February 2017!


SOURCE: Lehman Brothers UK Capital Funding IV LP
June 23, 2017 07:00 ET

Lehman Brothers UK Capital Funding LP: Notice to Holders of Preferred
Securities
LONDON, UNITED KINGDOM--(Marketwired - Jun 23, 2017) - Lehman Brothers
UK Capital Funding LP (LSE: 41YF)
LSE : 41YF
NOTICE TO THE HOLDERS OF:
EUR 200,000,000 EURO FIXED RATE ENHANCED CAPITAL ADVANTAGED PREFERRED
SECURITIES ("LP IV ECAPS")
ISSUER: LEHMAN BROTHERS UK CAPITAL FUNDING IV LP ("LP IV")
ISIN: XS0282978666
LIQUIDATION OF LB GP NO.1 LTD ("the Company") AND IMPLICATIONS FOR
HOLDERS OF LP IV ECAPS
THIS NOTICE CONTAINS IMPORTANT INFORMATION THAT IS OF INTEREST TO THE
REGISTERED AND BENEFICIAL OWNERS OF THE SUBJECT SECURITIES. IF
APPLICABLE, ALL DEPOSITORIES, CUSTODIANS AND OTHER INTERMEDIARIES
RECEIVING THIS NOTICE ARE REQUESTED TO EXPEDITE THE RE-TRANSMITTAL TO
BENEFICIAL OWNERS OF THE SECURITIES IN A TIMELY MANNER.
Your attention is drawn to the formal notice contained in the PDF link
below concerning the Company, LP IV and the LP IV ECAPS. In order to
view the formal notice, it is recommended that you copy and paste the
link into your browser.
http://www.rns-pdf.londonstockexchange.com/rns/9507I_1-2017-6-22.pdf
If you have any difficulties in opening the link, please contact
Samantha Hawkins at RSM Restructuring Advisory LLP by e-mail:
[e-mail].
Dated: 23 June 2017
This notice is given by
Bruce Alexander Mackay
RSM Restructuring Advisory LLP
as Joint Liquidator of LB GP No.1 Ltd



7) *** LBHI's TRuPS relevant prospectuses to the ecaps allowed claims

"Relevant | Definition of Relevant by Merriam-Webster
https://www.merriam-webster.com/dictionary/relevant - Cached - Similar
Definition of relevant. 1 a : having significant and demonstrable
bearing on the matter at hand. b : affording evidence tending to prove
or disprove the matter at issue or under discussion."

*** CTs Prospectus

"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."

https://www.sec.gov/Archives/edgar/data/806085/000104746905000357/a2149684z424b2.htm