Lehman Brothers Financial SA (LEHNQ)

[LexingtonVIII]

Hello Argus, can you help with this statement from the document you posted ( on page 29 ). I mentions the NOLS and how they will be handled . Also I note that it mentions liquidation.

Net Operating Losses

The NOLs of the LBHI Tax Group (including Debtor-Controlled Entities) are subject to audit and adjustment by the IRS and primarily expire in or about 2028. Substantially all of the LBHI Tax Group’s current consolidated net operating loss carryovers are attributable to the Debtors. The Plan provides for an orderly liquidation of the Debtors. As previously disclosed in the Company’s Quarterly Financial Report as of March 31, 2012 [Docket No. 29731], the LBHI Tax Group received a private letter ruling from the IRS in connection with the Plan going effective that stated (i) the liquidation of the Debtors for U.S. federal income tax purposes may occur over an extended period, and (ii) the reduction of the LBHI Tax Group’s NOLs as a result of the discharge

of debt pursuant to the Plan generally would not occur until completion of the liquidation. The Company has filed with the IRS a request for an extension of the ruling. All remaining Debtor NOLs not previously utilized to absorb taxable income of the LBHI Tax Group are expected to be fully utilized to offset the discharge of debt on the final date of liquidation of the Debtors.

Note 8 – Subsequent Events

Eighteenth Plan Distribution

On July 18, 2019, the Debtors made their eighteenth Plan Distribution to creditors. The Company distributed to creditors approximately $563 million [See Notice of Distribution - Docket No. 59816].

Nineteenth Plan Distribution

On October 3, 2019, the Debtors will make their nineteenth Plan Distribution to creditors. The Company will distribute to creditors approximately $393 million.




Page 29

Thanks for any insight