Coach T, the "Perfect Storm Continues" and I believe the pace will quicken...
Take a look at LBI Docket #1960 regarding the "Special Counsel to the Official Committee of Unsecured Creditors of Lehman Brothers Holdings Inc., et al"...
There's a concentration of information related to the "Clarification Letter" that was purportedly included in the sale transaction on 09/20/2008, but not legally executed until 09/22/2008. The complete docket is very good reading.
What this means to me is that everything (the complete transaction) freezes at the point of the original sale terms if Judge Peck nullifies the Clarification Letter. Any advantage whatsoever obtained by Barclays over and above the original amounts on 09/20/2008 will revert back to Lehmans.
"70. To the extent the Court decides that the question of whether the Sale Order (and the Court) approved the Clarification Letter presents a request for declaratory relief that only can be resolved through the initiation of a declaratory judgment action, the Committee stands prepared to file the attached complaint for declaratory judgment seeking that relief. 127 Indeed, the Committee submits the question of whether the Court (and the Sale Order) approved the Clarification Letter is a threshold issue that should be resolved first. Should the Court conclude that the Clarification Letter was not approved, then that determination may obviate the question of whether Rule 60(b) relief from the Sale Order is required. It also leads to the conclusion that the transfers consummated under the Clarification Letter were not authorized and hence subject to avoidance under section 549 of the Bankruptcy Code."
And...
"VIII. CONCLUSION
For the foregoing reasons, the Committee respectfully requests that the Court enter an order (A) granting the Committee relief from the Sale Order to the extent it purports to approve material modifications to the Sale Transaction that were not disclosed to the Court; (B) revising the Sale Order (1) to remove approval of the Clarification Letter from the Sale Order to the extent it materially modified the Sale Transaction approved by the Court; and (2) to amend the Purchased Assets definition so that it contains assets with a fair value, as of the closing date, that is no greater than the lesser of (a) $47.4 billion and (b) the fair value, as of the closing date, of the actual liabilities assumed by Barclays without the application of any secret or other $5 billion discount; (C) requiring a full a accounting and reconciliation of all Purchased Assets and assumed liabilities within 10 days of the entry of such Order (including any disposition of the same); (D) directing the return to the estates of the value of all Purchased Assets in excess of the above (with interest); and (E) awarding the Committee such further, different relief as the Court deems appropriate.
Dated: September 15, 2009
New York, New York
QUINN EMANUEL URQUHART
OLIVER & HEDGES, LLP
/s/ James C. Tecce
Susheel Kirpalani
James C. Tecce
Erica P. Taggart
51 Madison Avenue, 22nd Floor
New York, New York 10010
Telephone No.: (212) 849-7000
Special Counsel to the Official Committee Of
Unsecured Creditors Of Lehman Brothers
Holdings Inc., et al."
Coach T... your input on Lehmans is very helpful... Thanks!!
