Lehman Brothers Financial SA (LEHNQ)

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Basis - SCOTUS' Ruling, Parity with Affiliates' Equity:

7. In dozens of pleadings filed in the form of motions, joinders, and letters to
this Court, the Movants (or a subset thereof) have alleged and continue to allege that they are
entitled to payment from LBHI at this time on account of Trust Preferred Securities that they hold.
The Movants have alleged, among other things, that (i) the Trust Preferred Securities rank higher
than the Subordinated Debt Securities and, as such, they are entitled to payment from LBHI before
holders of subordinated debt issued by LBHI; (ii) the equity issued by the Trusts is actually in
paritywith preferred equity of LBHI affiliates who received payment under the Plan; and (iii) the
indenture trustees for the Subordinated Debt Securities purportedly failed holders of the Trust
Preferred Securities by not properly enforcing the Subordinated Guarantees and, as such, this error
should be corrected by reclassifying the Trusts’ claims from Class 10B to Class 4 under the Plan.
The majority of the Movants’ assertions are based on recycled, cut-and-paste arguments that
misinterpret LBHI’s obligations under the Subordinated Guarantees and ignore the language of
the relevant prospectuses for the Trust Preferred Securities, arguments which this Court and the
United States District Court for the Southern District of New York have each previously heard and
rejected several times.6

6
See ECF No. 59801 (order denying Re
08-13555-scc Doc 61352 Filed 11/18/21 Entered 11/18/21 15:36:27 Main Document
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