Lehman Brothers Financial SA (LEHNQ)

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The Debtors file this omnibus objection to claims (the “Two Hundred Eighteenth Omnibus Objection to Claims ”) pursuant to section 502(b) of title 11 of the United States Code (the “Bankruptcy Code ”), Rule 3007(d) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules ”), and this Court’s order approving procedures for the filing of omnibus objections to proofs of claim filed in these chapter 11 cases (the “Procedures Order ”) [ECF No. XXXX], to disallow and expunge, or in the alternative, reclassify as equity interests, the claims listed on Exhibit A 2. annexed hereto (the “Subordinated Guarantee Claims ”). The Subordinated Guarantee Claims were filed by holders of securities issued by Lehman Brothers Holdings Capital Trust III (“LBH III ”), Lehman Brothers Holdings Capital Trust IV (“LBH IV ”), Lehman Brothers Holdings Capital Trust V (“LBH V ”), or Lehman Brothers Holdings Capital Trust VI (“LBH VI ”) (collectively, the “Trusts ”), non-Debtor Delaware trusts that held subordinated debt issued by LBHI. The Subordinated Guarantee Claims are based on guarantees issued by LBHI (the “Subordinated Guarantees ”) in connection with the securities issued by one or more of the Trusts. 3. As described below, pursuant to the terms of the Subordinated Guarantees, LBHI has no liability to the holders of the Subordinated Guarantee Claims. Accordingly, the Debtors file this objection to disallow and expunge the Subordinated Guarantee Claims. In the alternative, even if liability for the Subordinated Guarantee Claims exists, the Subordinated Guarantee Claims should be subordinated in accordance with their terms, which rank LBHI’s obligations, if any, junior to LBHI’s obligations for LBHI’s subordinated debt and pari passu with LBHI’s preferred equity. Any liability for the Subordinated Guarantee Claims should therefore be reclassified as equity.