Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

The alternative outcome..m

The tier Y distribution applies for the next layer
2 of funds, if available , as your Lordship can see. And
3 there are at this point, and this feeds into the issue 1
4 debate which we are having, and I’m told to say that
5 no one can rely upon the terms of this in respect of the
6 argument, but I haven’t heard anyone seek to do so, so
7 I don’t think that is a point we need to worry about too
8 much.
9 There are three alternative distributions under tier
10 Y, one called an ECAPS outcome, one under an LBHI
11 outcome, and one under an alternative outcome. And if
12 you go back to page 6, at the top of page 6 the
13 definition of ECAPS outcome, which essentially means if
14 GP1 wins. And on page 7 there is an LBHI outcome, which
15 gives the plaudits to Mr Allison’s client .
16 👉️The alternative outcome, if you go back to page 10,
17 is anything that isn’t 1 or 2. And in that event, as
18 your Lordship can see, there will need be
19 a recalibration depending on what it is, if it is
20 exists .
21 MR JUSTICE HILDYARD: That is a case I sort of go off piste,
22 as it were.
23 MR BELTRAMI: I haven’t put that in my notes, my Lord. Yes,
24 it is a for the avoidance of doubt clause. And if that
25 were to occur, then the parties would have to reconsider

MR JUSTICE HILDYARD: Well, thank you for making it
2 available . I don’t either approve or disprove it ,
3 I simply note this is the basis on which you have
4 proceeded. My questions really relate to finality .
5 MR BELTRAMI: Yes.
6 MR JUSTICE HILDYARD: And in that context, I noticed two
7 things which you may assist me on. The first is that 👉️DB
8 is described as an informal representative of other
9 persons interested in the same way, and I take it that
10 there is no issue in that regard, and I can take it that
11 the issue which will have been argued by DB one way or
12 the other will be, in effect , concluded. There might
13 not be a strict issue estoppel but it is very late , you
14 haven’t advertised the fact of this congregation, it
15 should be sufficient . Is there anything I need to be
16 wary of in that respect?
17 MR BELTRAMI: I don’t believe there is. Your Lordship is
18 right that DB’s position has always been not a formal
19 representative of the ECAPS holders.
20 MR JUSTICE HILDYARD: Yes.
21 MR BELTRAMI: And it has been argued on that basis
22 throughout.
23 MR JUSTICE HILDYARD: Yes.👈️
24 MR BELTRAMI: My understanding is there a level o

MR JUSTICE HILDYARD: Right, okay.
5 MR BELTRAMI: But that is something that essentially can’t
6 be legislated for at the moment.
7 So far as the administrators are concerned, they
8 propose to distribute along these lines .
9 MR JUSTICE HILDYARD: Yes. I suppose there are two issues
10 very closely related . 👉️The first is whether, as I take
11 it to be, all ECAPS holders and all persons interested
12 under the DB banner have had full and proper notice of
13 the fact that this was ”put up or shut up” time in terms
14 of raising any arguments they wished to raise.
15 MR BELTRAMI: Yes.👈️
16 MR JUSTICE HILDYARD: Point 1. Point 2 is whether, in the
17 time available , they had personally committed to the
18 agreement you have handed up, which is, you say, some
19 have, some haven’t.
20 MR BELTRAMI: My Lord, yes. This may ultimately I suppose
21 may be something for Ms Hilliard, because it is a matter
22 between the GP1 liquidators --
23 MR JUSTICE HILDYARD: Yes.
24 MR BELTRAMI: -- and the ECAPS holders.
25 MR JUSTICE HILDYARD: Yes, you are right.
5
1 MR BELTRAMI: My understanding certainly is I know the head

Source:

4 -
Priority Legal Issue 1 and any remaining aspects of the Strike Out Application which related to the Priority
Legal Issue 1 were heard on 9 and 10 October 2023, and copies of the daily Court transcripts can be found
below:
lbh-daily-transcript-9-october-2023.pdf (pwc.co.uk)
lbh-daily-transcript-10-october-2023.pdf (pwc.co.uk)
At the conclusion of the two-day hearing Mr Justice Hildyard reserved judgment.
Qualification Statement: this notice has been prepared using information obtained by Bruce Alexander
Mackay and Matthew Robert Haw (i) acting as the Joint Liquidators of the Company; and (ii) acting as
licensed insolvency practitioners specifically in relation to winding-up the Partnerships pursuant to an order
of the High Court made in accordance with section 6(3) of the Limited Partnerships Act 1907. Reference in
this notice to the Joint Liquidators also includes (where the context requires) Bruce Mackay and Matthew
Haw acting as insolvency practitioners for the purpose of winding-up the Partnerships. Given the wider
international failure and insolvency of associated Lehman entities and the passage of time since the
Partnerships were active, it has been difficult to obtain all information relevant to the Partnerships and
readers of this notice should understand that the Joint Liquidators' investigations have been hampered (in
some cases) by the paucity of financial information and documentation.
Neither the Joint Liquidators nor RSM Restructuring Advisory LLP accept any liability whatsoever arising as
a result of any decision or action taken or refrained from as a result of information contained in this notice.
This notice should be read in conjunction with the previous notices to the Holders issued by the Joint
Liquidators on 23 June 2017, 13 November 2017, 11 May 2018, 19 November 2018, 25 September 2019,
17 March 2021, 30 August 2022 and 21 September 2023 copies of which are available on request.
Contacts: holders of the Securities who have queries concerning anything mentioned in this notice may
contact the Joint Liquidators at:
RSM Restructuring Advisory LLP, 25 Farringdon Street, London, EC4A 4AB
E-mail: [e-mail]
Please note that in any correspondence with the Joint Liquidators, holders of the Securities will be required
to verify their holdings of the relevant Securities to the Joint Liquidators by:
• such holder(s) sending an e-mail to the Joint Liquidators c/o Samantha Hawkins using the email
address shown above and referencing "LB GP No. 1 Ltd (In Liquidation)" and the ISIN of the
Securities in the subject line and disclosing the identity of the holder, the identity of the Partnership
or Partnerships which issued the Securities, the nominal amount of each ISIN held by the holder
and the details of the person(s) who shall represent the holder; and
• such holder(s) providing (by e-mail to the Joint Liquidators c/o Samantha Hawkins) a letter, screen
shot or other proof of holding (in each case from Euroclear/Clearstream and their custodian (if
applicable)) verifying each of its holdings in the Securities and disclosing the following information:
o ISIN
o Account number
o Participant name
o Nominal amount
o Beneficial Holder details (including e-mail address)
This notice is given by
Bruce Alexander Mackay
Acting as Joint Liquidator of LB GP No.1 Ltd without personal liability
Of RSM UK Restructuring Advisory LLP
ISIN/CUSIP numbers used in this notice have been included solely for the convenience of the holders of
Notes. The Joint Liquidators assume no responsibility for the selection or use of such number and make no
representation as to the correctness of the numbers listed above.