Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

Excerpt from the CTs' June 19, 2019 hearing with Judge Chapman:


"THE COURT: So, what you're referring to is the
22 law that's clear and that I set forth in the recent SRM
23 decision, which I wouldn't charge Mr. Gregory or Mr. Wu with
24 being aware of. But the law is that when there is a general
25 guarantee, as opposed to a specific guarantee, and corporate

resolution is a general guarantee, it's necessary to show
2 that one acted in reliance -- with knowledge of and in
3 reliance on the general guarantee. So, by definition,
4 that's not the case here."

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1) The 2005 LBHI Board of Directors' corporate resolution is a general guarantee as discussed above. A CTs' holder has to show knowledge of or reliance on this general guarantee before purchasing their CTs as seen in the June 19, 2019 hearing transcript.

2) However LBHI’s August and September 2008 guaranties and security agreements is a specific guarantee. Which means that a holder was not required to show knowledge of or reliance on this specific guarantee before purchasing their CTs. This specific guarantee was not addressed at the June 19, 2019 hearing. See the specifics of this guarantee below:

From Docket 54683:
"“Unaffected Matters” means claims filed by or on behalf of any JPMorgan Entity or any affiliates or funds of a JPMorgan Entity, or in which any JPMorgan Entity or any affiliates or funds of a JPMorgan Entity has an interest, that are not Settled Matters, including without limitation claims filed by or on behalf of a
JPMorgan Entity as agent, for a customer or for a fund that it manages, claims relating to Canary Wharf, claims held
from time to time by a JPMorgan Entity’s distressed claims trading
desk, and any other claims that JPMorgan did not assert were covered by LBHI’s August and September 2008 guaranties and security agreements in favor of JPMCB’s subsidiaries and affiliates.

For the avoidance of doubt, claims relating to the LBSF Action are not Unaffected Matters. Lehman reserves all objections and defenses to the Unaffected Matters."