Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

LBHI and the PWC Joint Administrators cannot isolate LBHI's CTs from the Framework Agreement and ECAPS' payments and from LBIE's Preference shares distributions to LBHI2 and its waterfall down to the ECAPS' payments:

On March 14, 2023, LBH PLC filed an application to
the High Court of Justice in England for directions
(the "Application") on certain legal issues which are
relevant to the priority and payment of future
distributions to holders of its subordinated debts. The
outcome of this Application will have a material
effect on LBHI recoveries.

Quarterly Financial Report as of June 30, 2023 (Unaudited)
Page 14
Note 4 – Legal Proceedings (continued)
(a) ECAPS
LBHI owns a claim of GBP 1.1 billion related to the
subordinated debt issued by LBH PLC, a non-
controlled affiliate in administration in the UK. LBH
PLC also has outstanding subordinated notes owned
by three third party trusts known as ECAPS I, II, and
III. A dispute over the relative priority of these
subordinated debt instruments issued by LBH PLC
was litigated in the UK courts. The Court of Appeal
held that the subordinated notes owned by ECAPS I-
III are senior to the subordinated debt owned by
LBHI.