NEWLY DISCOVERED EVIDENCED UNEARTHED THROUGH RULE 2004
DISCOVERY WARRANTS RELIEF FROM SALE ORDER UNDER RULE 60(B)
(Taken from the Unsecured Creditors Committee Motion LBHI Docket #5531)
Since the Court entered the Sale Order, myriad facts have been discovered that simply were not presented for the Court's consideration. These include, without limitation:
the implied $5 billion discount that was neither disclosed in the APA nor disclosed to the Court;
• the restructuring of the transaction that resulted in Barclays acquiring the brokerdealer business through the Barclays-LBI Repurchase Agreement (and not the APA),
including the "haircut" associated with the Fed Portfolio securities;
• the Lehman Seller's acquiescence to Barclays' last-minute demands for additional assets, and their efforts to find additional assets until Barclays was satisfied that there
was nothing left;
• the transfer of unencumbered securities in the non-actionable box which may have totaled $2.3 billion (not $1.9 billion); the OCC Accounts, which may have totaled between $2.3 billion and $5.0 billion and the 15c3 Securities (which may have totaled
$800 million);
• even though the haircut under the Fed Repurchase Agreement totaled between $4.4. billion and $5 billion, the haircut under the Barclays —LBI Repurchase Agreement was $5 billion (and possibly as high as $7.190 billion) -- a haircut that was retained by Barclays as part of the transaction; 129 and
• overstatement of the Cure and Compensation Liabilities, which were grossly overestimated at a purported $4.25 billion -- but instead totaled only $1.3-$1.7 billion. Each of these newly-discovered facts demonstrate the Sale Transaction that was consummated differed significantly from the transaction described to the Court.
I think that about sums it all up!
Enjoy the Ride !
Coach T
