A&M is going to file a reorg plan on March 15th as planned, but no disclosure statement.
Preliminary Statement
1. The Debtors’ chapter 11 cases are of an unprecedented size and
complexity, which has required that the Debtors devote substantial efforts and resources over the
past 18 months to administer diverse assets of the Lehman Enterprise which literally extend
throughout the globe and involve over 80 different insolvency-related proceedings in
approximately 16 jurisdictions.
In the effort to maximize recoveries, the Debtors under the
leadership of the Chief Executive Officer of LBHI, Bryan P. Marsal, and with the extended
assistance of the Debtors’ financial advisors, Alvarez & Marsal, have implemented global
strategies to: coordinate with foreign fiduciaries to maximize the value of assets, particularly in
connection with the resolution of derivative transactions; preserve the value of tens of billions of
dollars of real estate investments; as well as defend the Lehman Enterprise in numerous
adversary proceedings and contested matters; and, protect the worldwide interests of the Debtors.
In addition, the Debtors have been extensively engaged in the process of formulating a joint
chapter 11 plan (the “Plan”). This has not been a simple task. The complexities and different
claimant interests as they relate to the Debtors and the Lehman Enterprise are staggering. As a
result of concentrated and dedicated efforts, the Debtors will file their Plan with the Court prior
to the expiration of their exclusivity period under section 1121(d) of the Bankruptcy Code on or
before March 15, 2010.
2. The Plan is consistent with the requirements of section 1129 of the
Bankruptcy Code. Its formulation has consumed substantial time and effort on the part of the
Debtors and their professionals. The interconnectedness of the Debtors and the Lehman
Enterprise, as well as the need to analyze and accumulate relevant information, as well as meet
and confer with the Statutory Unsecured Creditors’ Committee (the “Committee”) and, to the
extent feasible, other parties in interest, were extremely demanding. Manifestly, when Congress
enacted the 2005 Amendments to the Bankruptcy Code as part of the Bankruptcy Abuse
Prevention and Consumer Protection Act (“BAPCPA”) and established an 18 month limitation
on a debtor’s exclusive right to file a plan, it did not contemplate cases of the size, complexity
and scope of the Debtors’. As a consequence, the Debtors have not had a full opportunity to
consummate negotiations with key creditor constituencies as to the provisions of the Plan. In
that context, the Debtors have not had ample time to complete a comprehensive and adequately
informative disclosure statement, as required pursuant to section 1125 of the Bankruptcy Code
(“Disclosure Statement”). There are major creditor constituencies whom the Debtors desire to
meet and confer with in pursuit of the objective of a consensual plan. Given a reasonable
opportunity to pursue consensus may result in the formulation of a more comprehensive and
informative Disclosure Statement that would facilitate the expeditious confirmation of the
Debtors’ Plan.
3. There are several occurrences that will facilitate and expedite the
formulation of a comprehensive and adequately informative Disclosure Statement. The Debtors
currently are awaiting the opportunity to review and analyze the recently filed report of Anton R.
Valukas, the Court appointed Examiner (“Report”). The Report has been filed with the Court
under seal and is not accessible by the Debtors or other parties in interest. On March 11, 2010,
the Examiner will move the Court to establish procedures that would enable either the unsealing
of the Report or means for accessing the Report. Undoubtedly, information contained in the
Report will be pertinent to the Debtors’ Plan and their Disclosure Statement. In addition, the
Debtors’ ongoing pursuit to thoroughly assess the values of their assets and liabilities that will be
subject to the Plan must be completed and included in their Disclosure Statement. Voluminous
amounts of data and information must still be compiled, analyzed and summarized for inclusion
in a comprehensive Disclosure Statement that will enable impaired claimants to make informed
judgments as to whether to accept or reject the Debtors’ Plan. Each of the foregoing are integral
to the Disclosure Statement formulation. Accordingly, the Debtors require additional time in
which to complete and file their Disclosure Statement and proceed with the solicitation of
acceptances of their Plan. The Debtors intend to use such additional time as the Court may
grant, as aforesaid, to meet and confer with the representatives of major constituencies to seek
their input as to the provisions of the Plan and to enable the Debtors to file a fulsome, complete
Disclosure Statement that is consistent with section 1125 of the Bankruptcy Code. Accordingly,
it is requested that the time within which the Debtors may file their Disclosure Statement be
extended, through and including April 14, 2010, without prejudice to any future request for a
further extensions for cause shown.
Don't know how A&M can throw any Lehman Class out. They still don't know what the whole is going to be. Seems to me that has to include all classes of Lehman Stakeholders. Bonds, Trusts, Preferreds, Common.
Just my opinion. How can you have a plan that throws out classes when they file a plan and not a disclosure statement...
