Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

20-CV-5823 (RA)
MEMORANDUM
OPINION AND ORDER
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In any event, even if the language of the prospectuses had some relevance to the Court’s
prior reasoning, Lehman’s omission of the bolded language when quoting the prospectuses was
not misleading. The quotation, in its entirety, establishes that the Subordinate Guarantees are (1)
subordinate to Lehman’s liabilities (that is, to general unsecured creditors in the bankruptcy); (2)
in parity with Lehman’s “most senior preferred or preference stock”; and (3) senior to Lehman’s
common stock. Nothing about the bolded passage changes this priority structure; rather, the
bolded passage simply clarifies that the Subordinate Guarantees are in parity both with Lehman’s
“most senior preferred or preference stock” and with “with any guarantee now or hereafter entered
into by [Lehman] in respect of any preferred securities of any affiliate of [Lehman].” Lehman’s
“claim[] that the Guarantee is Pari Passu with [Lehman’s] preferred equity,”

Quarterly Financial Report as of June 30, 2022 (Unaudited)
Page 5
Estimated Remaining Creditor Recoveries
The following schedules show the estimated remaining recoveries for LBHI by claim class, based on the
Recovery %
Class Designation $ $ A B = A + B
3 Senior Unsecured $ 82,521 $ 179 0.217% 46.520% 46.737%
4A Senior Affiliate Claims 33,537 65 0.195% 37.467% 37.661%
4B Senior Affiliate Guarantee 9,521 18 0.190% 36.560% 36.750%
5 Senior Third-Party Guarantee 30,558 47 0.152% 29.252% 29.405%
7 General Unsecured 4,930 10 0.202% 43.549% 43.751%
8 Derivative Affiliate / Affiliate Guarantee Claims 451 1 0.179% 34.422% 34.601%
9A Third Party Guarantee Derivatives 17,923 26 0.143% 27.535% 27.678%
9B Third Party Guarantee Derivatives RACER's - - 0.087% 16.740% 16.827%
10A Subordinated Class 10A Claims 3,399 - - - -
10B Subordinated Class 10B Claims 10,330 - - - -
10C Subordinated Class 10C Claims 1,493 - - - -
Total $ 194,664 $ 346
08-13555-scc Doc 61504 Filed 09/29/22 Entered 09/29/22 06:32:53 Main Document
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