Lehman Brothers Financial SA (LEHNQ)

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Continue with LBH's distribution footnotes:

Notes:
1. All cash balances are as at 14 September 2025 and are stated in pounds sterling, adjusting for
the conversion of any remaining foreign currency balances.
2. Amounts include recoveries from LBIE after deduction for costs and expenses, and after taking
account of the Wentworth joint venture structure and the associated financial sharing agreement.
3. Estimated net equity return to LBH from its investment in MBAM, after tax and costs.
4. Recoveries attributable to LBIE’s remaining assets were not anticipated to have materialised by
the expiry of the LBIE administration and, as all creditor claims had previously been paid in full,
LBIE’s administrators planned an orderly exit from administration.
a. As LBH is the UK group entity expected to remain in administration for the longest
period, LBIE agreed to sell its remaining assets (with the exception of its remaining
claim for interest from the US Internal Revenue Service), to LBH for consideration of
c.£16.5m.
b. This transaction was entered into on 3 September 2025 and involved arrangements to
take account of the indirect interest which two parties to the Wentworth Sharing
Agreement also had in recoveries from LBIE’s assets.
c. The amounts include recoveries from the former LBIE assets, after deduction for
associated costs and expenses in realising such assets, and after taking account of
certain payments which replicate the financial sharing agreement with the Wentworth
joint venture parties had the assets been realised by LBIE.
5. As described more fully in the LBH Administrators’ 32nd Progress Report dated 14 October 2024, the
Framework Agreement, which became effective on 8 October 2023 was amended in October 2024.
The Amended and Restated Framework Agreement amended the specific sharing formula as set out
in the Framework Agreement. The revised sharing formula under which LBH will make payments to
LBGP and LBHI of funds available for subordinated creditors is summarised below:
a. Tier X - first available funds of £187.2m - these funds have now been distributed in full; and
b. Tier Y - next available funds of up to £225.0m - this distribution can only take place once (i)
Tier X funds have been distributed in full (which is now the case); (ii) there has been a final
adjudication or settlement of Priority Legal Issue 1 (which is now the case); and (iii) the
unsubordinated creditors’ remaining entitlement to post-administration statutory interest has
been satisfied in full.
i. Subject to the above conditions being met, the next £225.0m of funds available to
subordinated creditors will be paid in the following proportions:
1. 73.8% (equivalent of up to £166.05m) to LBGP; and
2. 26.2% (equivalent of up to £58.95m) to LBHI.
Of these funds, £111.8m has been distributed to the subordinated creditors (representing a
distribution of £115.0m less a retention of £3.2m as provided for in the Amended Framework
Agreement).
c. Tier Z - remaining funds available to subordinated creditors - subject first to the distributions
of Tiers X and Y, further distributions to LBH’s subordinated creditors will be paid from any
remaining funds available in the following proportions:
i. 40% to LBGP; and
ii. 60% to LBHI.

https://www.pwc.co.uk/services/business-restructuring/administrations/lehman/lehman-brothers-holdings/other-notices.html