Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

Smoke and Mirrors on the Framework Agreement:

9 MR JUSTICE HILDYARD: Yes. Well, first of all, thank you
10 very much for letting me know at the weekend, that is
11 very helpful . I won’t say whether it saved any reading,
12 but it was good to see it anyway.
13 It is quite a Delphic correspondence with me, maybe
14 intentionally so.👉️ I have not seen the framework
15 agreement. I have gathered that it extends to matters
16 beyond the matters with which I was to be involved.👈️
17 I do not know whether I need to see the framework
18 agreement; all I would say is that as Henderson and the
19 like is raised here, 👉️I should be depressed, if not in
20 breach of my obligations, 👈️to not to have checked it to
21 make sure that as regards all but issue 2 -- ie, 3, 4
22 and 5 have now been finally concluded. Issue 2, in
23 circumstances said to be unlikely to arise but which I
24 have no grip on at all , is disposed of, subject to that
25 condition, and issue 1 is the only remaining fight.
2
1 That is my understanding of the position.
2 MR BELTRAMI: My Lord, that’s correct. Issue 1 is obviously
3 the remaining fight, 3 to 5 have gone, 👉️and issue 2, as
4 I understand it -- well, primarily it is withdrawn for
5 your Lordship’s hearing today. 👈️Given the content of the
6 framework agreement there is a possibility , I think that
7 is the way it is put in the correspondence, that that
8 may have to come back, but that is perceived as
9 unlikely .

Resource:

October 9, 2023 Re Lehman Brothers Holdings PLC (In Administration) Day 1
1 Monday, 9 October 2023
2 (10.30 am)
3 Housekeeping
4 MR JUSTICE HILDYARD: Good morning, Mr Beltrami.
5 MR BELTRAMI: My Lord, good morning. A large cast, as your
6 Lordship is aware: me for the administrators, Mr Allison
7 and his team for LBHI, Ms Tolaney and her team for
8 Deutsche Bank, and Ms Hilliard and her team for GP1.
9 My Lord, as you are aware, it is a hearing that was
10 listed for the trial of three applications , the
11 administrators’ application for directions on five legal
12 issues , a second application by the administrators for
13 directions in relation to A distribution , and an
14 application by Deutsche Bank to strike out three of the
15 five legal issues .
16 Now, as your Lordship I hope has been told, the
17 interested parties have recently come to an
18 accommodation between themselves, as a result of which
19 the administrators are able to withdraw the directions
20 application in respect of issues 2 to 5, leaving
21 therefore , and for today’s business, only issue 1, which
22 concerns the ranking of LBHI’s claim to principle on
23 what is called claim C against GP1’s claim to statutory
24 interest on what is called claim D, with the result that
25 the strikeout application has also been withdrawn for
1
1 issues 4 and 5 and the distribution application equally
2 withdrawn.
3 I think your Lordship was shown or was sent a draft
4 consent order over the weekend, I’m not sure we need to
5 spend any time on that now, but that formalises the
6 parties ’ agreement between themselves, subject to the
7 order of the court, to dispense with those other matters
8 and focus on issue 1 and the strikeout.
9 MR JUSTICE HILDYARD: Yes. Well, first of all, thank you
10 very much for letting me know at the weekend, that is
11 very helpful . I won’t say whether it saved any reading,
12 but it was good to see it anyway.
13 It is quite a Delphic correspondence with me, maybe
14 intentionally so. I have not seen the framework
15 agreement. I have gathered that it extends to matters
16 beyond the matters with which I was to be involved.
17 I do not know whether I need to see the framework
18 agreement; all I would say is that as Henderson and the
19 like is raised here, I should be depressed, if not in
20 breach of my obligations, to not to have checked it to
21 make sure that as regards all but issue 2 -- ie, 3, 4
22 and 5 have now been finally concluded. Issue 2, in
23 circumstances said to be unlikely to arise but which I
24 have no grip on at all , is disposed of, subject to that
25 condition, and issue 1 is the only remaining fight.
2
1 That is my understanding of the position.
2 MR BELTRAMI: My Lord, that’s correct. Issue 1 is obviously
3 the remaining fight, 3 to 5 have gone, and issue 2, as
4 I understand it -- well, primarily it is withdrawn for
5 your Lordship’s hearing today. Given the content of the
6 framework agreement there is a possibility , I think that
7 is the way it is put in the correspondence, that that
8 may have to come back, but that is perceived as
9 unlikely .
10 My Lord, in relation to your earlier point about the
11 framework agreement, perhaps we can take that away and
12 I can discuss with those involved. It is not really my
13 fight , if you like , on that one. But I understand what
14 your Lordship has said about seeing that or not --
15 MR JUSTICE HILDYARD: I don’t know whether I’m sort of
16 approving it, whether it is a matter of historical note,
17 whether basically you are simply withdrawing it, as the
18 wording of the (inaudible) order suggests, you are
19 withdrawing your applications for directions as regards
20 2 to 5. You are presumably going to formally reserve
21 the right to come again on issue 2 in the very limited
22 circumstances described, but I think I do need to know
23 something about those and something about their
24 likelihood before relinquishing court time or consenting
25 in advance to it being restored at some future, even if
3
1 unlikely , event.
2 MR BELTRAMI: My Lord, yes, I can’t offer it to you right
3 now, but --
4 MR JUSTICE HILDYARD: I don’t want to press you,
5 Mr Beltrami. But before finally putting it to bed, let
6 us park the point and come back to it when we need to.
7 MR BELTRAMI: My Lord, yes. Thank you.
8 Focusing therefore on just on issue 1 for the
9 moment, there is a timetable which has been agreed
10 between the parties, as your Lordship is aware.
11 Essentially I get an hour to show your Lordship one or
12 two things, Mr Allison then gets the rest of the day, to
13 the extent he needs that. Then over to Deutsche Bank
14 and GP1 for the equivalent time probably tomorrow, and
15 then a short reply in response.
16 So it is anticipated that it will take up to two
17 days, and it may be shorter, but that’s the framework
18 timetable for your Lordship.
19 MR JUSTICE HILDYARD: You are really the compère for this,
20 aren’t you? You have set out very helpfully in your
21 skeleton the various -- the ambit of the dispute. In
22 correspondence you have indicated where (inaudible) your
23 sympathies or views lay, those are not of particular
24 relevance to me now, and it is really a fight with
25 Mr Allison.
4
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