"NATURE OF THE ACTION
08-13555-scc Doc 59660 Filed 04/30/19 Entered 04/30/19 11:00:47 Main Document
1. LBHI brings this action to recover $260,095,121.86 owed to LBHI from
Defendants pursuant to the terms of the Settlement Agreement (as defined below)1 entered into by
LBHI and Defendants. Specifically, LBHI is owed $128,044,775.80 from LBL, $16,280,324.87
from MBAM, $10,160,114.94 from ESH, and $105,609,906.25 from LBHI2. LBHI distributed
these amounts on account of LBHI Class 4B Senior Affiliate Guarantee Claims that were allowed
pursuant to the Settlement Agreement (the “Guarantee Claims”). Each Defendant is in breach of
the Settlement Agreement for its failure to remit such amount to LBHI.
2. Pursuant to the Settlement Agreement, the Defendants agreed to remit to LBHI
distributions that exceeded the amount of the Primary Claim.2 The relevant Primary Obligors have
made distributions to the holder of each Primary Claim that equal the amount of the Primary Claim.
Thus, according to the express terms of the Settlement Agreement, all amounts distributed by
1 Capitalized terms used herein but not otherwise defined shall have the same meaning as in the
Settlement Agreement.
2 Many of the LBHI Class 4B Senior Affiliate Guarantee Claims that were allowed pursuant to the
Settlement Agreement were allowed against LBHI in amounts substantially lower than the amount
of the corresponding Primary Claims. Accordingly, the allowed Primary Claim, and not the
allowed Guarantee Claim, was used to measure satisfaction of the Guarantee Claim.
.
.
.
II. LBH PLC Made Distributions That Exceed the Amount of the Applicable Primary
Claims
22. LBL. Under the Settlement Agreement, LBHI gave Defendant LBL an Allowed
Class 4B Senior Affiliate Guarantee Claim (No. 200020) in the amount of $360,000,000.00. To
date, LBHI has made distributions of $128,044,775.80 on account of such claim. The
corresponding Primary Claim against LBH PLC equals GBP 709,013,200.00. To date, LBH PLC
distributed GBP 726,861,189.28 on account of the Primary Claim (GBP 709,013,200.00 as 100%
principal and GBP 17,847,989.28 as statutory interest).
23. MBAM. Under the Settlement Agreement, LBHI gave Defendant MBAM an
Allowed Class 4B Senior Affiliate Guarantee Claim (No. 200031) in the amount of
$46,568,411.00. To date, LBHI has made distributions of $16,280,324.87 on account of such
08-13555-scc Doc 59660 Filed 04/30/19 Entered 04/30/19 11:00:47 Main Document
claim. The corresponding Primary Claim against LBH PLC equals GBP 51,924,415.00. To date,
LBH PLC distributed GBP 53,231,508.30 on account of the Primary Claim (GBP 51,924,415.00
as 100% principal and GBP 1,307,093.30 as statutory interest).
24. ESH. Under the Settlement Agreement, LBHI gave Defendant ESH an Allowed
Class 4B Senior Affiliate Guarantee Claim (No. 200023) in the amount of $28,565,323.00. To
date, LBHI has made distributions of $10,160,114.94 on account of such claim. The corresponding
Primary Claim against LBH PLC equals GBP 31,358,468.41. To date, LBH PLC distributed GBP
32,147,855.14 on account of the Primary Claim (GBP 31,358,468.41 as 100% principal and GBP
789,386.73 as statutory interest).
III. LBIE Made Distributions That Exceed the Amount of the Applicable Primary Claims
25. Under the Settlement Agreement, LBHI gave Defendant LBHI2 an Allowed Class
4B Senior Affiliate Guarantee Claim (No. 200016) in the amount of $302,087,667.00.5 To date,
LBHI has made distributions of $105,609,906.25 on account of such claim. The corresponding
Primary Claims against LBIE total GBP 1,278,542,606.85. To date, LBIE distributed
GBP 1,996,348,851.41 on account of the Primary Claims (GBP 1,278,542,606.85 as 100%
principal and GBP 717,806,244.56 as statutory interest).
IV. LBHI’s Efforts to Avoid Litigation
26. Defendants have failed to make any portion of their required payments to date under
the Clawback Provision.
27. LBHI engaged in discussions with Defendants for over six months to recover the
amounts to which LBHI became entitled. While LBHI hoped that the discussions would lead to a satisfactory resolution, as of the filing of this adversary complaint, those discussions have not
resulted in a consensual resolution. Accordingly, LBHI hereby brings these claims against
Defendants.
5 LBHI2 subsequently assigned its rights to receive distributions from LBIE on the corresponding
Primary Claims."
*** Talk to me boss! I got my mind right boss! Do right by me boss! Boss, you done went and done it again...settlement agreement!
Docket # 59659
Filed Apr 25 2019
Motion to Join Joinder to Motion for an Order Enforcing the Modified
Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc.
and its Affiliated Debtors for Purposes of Distributions filed by Rex
Wu (related document(s)[59614]) filed by Rickey Gregory. (White, Greg)
Debtor: 08-13555 Lehman Brothers Holdings Inc.
Related Dockets
"EXHIBIT A
A)
Docket 8307, page 1775 - Report of Anton R. Valukas, Examiner
"This resolution,however, may be viewed as a unilateral contract for a
general guaranty that may be enforced by "anyone to whom it is
presented who acts upon it" 6619""
.
.
.
footnote 6620: The LBHI 2006 10-k (Feb, 13, 2007) and 2007 10-K (Jan.
29, 2008) refer to the fact that LBHI "guarantee[s] all of the
obligations of certain subsidiaries...."
B)
Docket # 46304
Filed Sep 13 2014
Response to Order Granting Motion for Authorization for Lehman
Brothers Special Financing Inc. and Lehman Brothers Commercial
Corporation to invest disputed claims reserves for claim numbers 66455
and 66476 (related document(s)[46276]) filed by Rickey Gregory.
(White, Greg)
Debtor: 08-13555 Lehman Brothers Holdings Inc.
Related Dockets
C)
The ECAPS' June 9, 2005 Board Resolution (Guarantee Claim against
LBHI) facts are inside "Docket # 58763
Filed Aug 27 2018
Letter to The Honorable Shelley C. Chapman Regarding Sixteenth Plan
Distribution Filed by Garrett A. Fail on behalf of Lehman Brothers
Holdings Inc.. (Fail, Garrett)
Debtor: 08-13555 Lehman Brothers Holdings Inc."
D)
LBHI's Capital Trust Preferred Securities (CTs), per their
relevant prospectus, and the ECAPS are guaranteed
by the June 9, 2005 General Guaranty or Board of Directors' Resolution
by way of LBH PLC's General Guaranty. LBHI guaranteed the liabilities,
including the ECAPS Limited Partnerships 1 thru 3 subordinate notes,
issued by LBH PLC with the June 9, 2005 General Guaranty or Board of
Directors' Resolution."
