Lehman Brothers Financial SA (LEHNQ)

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"reducing the board to three directors is an appropriate and efficient structure to govern the next phase of estate activities"

Throughout this period, each and every director of the Plan Administrator has played a highly
active role.
8. LBHI is now in its final stages of liquidation. The Plan Administrator
recently estimated future Plan Distributions of $203 million for the benefit of remaining creditors
[ECF No. 61814]. This sum will provide an additional recovery range of 0.047% to 0.122% to
LBHI’s remaining creditors holding claims in various classes aggregating approximately $195
billion4
.
9. The collection and distribution of this remaining cash will require additional
time given the nature of the remaining assets. The vast majority of these future recoveries will
come from the proceeds of LBHI’s claims and interests in the liquidations of its non-controlled
affiliates, which are being conducted overseas in separate foreign jurisdictions and supervised by
other administrators. Thus, despite the best efforts of the Plan Administrator, its board, and the
Plan Trustees, the global liquidation process with the consequent distributions up to the original
ultimate parent, LBHI, requires additional time, work, oversight and appropriate governance.
10. As such, LBHI obtained an extension of its private letter ruling from the
Internal Revenue Service (the “IRS”) approving the status of the Plan as a plan of liquidation for
federal income tax purposes until March 2029, assuming continued compliance with the
liquidation purpose of the Plan and the continuation of the Plan Trust.
11. In recognition that the most complicated aspects of LBHI’s liquidation have
been successfully completed, the Plan Trustees and the board of seven directors believe reducing
the board to three directors is an appropriate and efficient structure to govern the next phase of
estate activities, and that Messrs. Arnold, Mahoney and Pauker should constitute the continuing
4
As of the Quarterly Financial Report as of June 30, 2025 [ECF No. 61814].
08-13555-mg Doc 61844 Filed 09/12/25 Entered 09/12/25 16:16:42 Main Document
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