Lehman Preferred Series "J" Preferred (fka LEHJQ)

[DJN]

TOOGOODFELLA, News for 'LEHMQ' - (Lehman Brothers Holdings Inc. and Lehman Hong Kong Entities Reach Settlement Agreement Resolves more than $20 Billion of Intercompany Claims)


NEW YORK, Aug 03, 2011 (BUSINESS WIRE) --
--Lehman Hong Kong Entities Agree to Support LBHI's Pay-Out Plan for Creditors

Lehman Brothers Holdings Inc. (LBHI) and the Liquidators for Lehman Hong Kong,
one of the largest groups of LBHI's international affiliates, have reached an
agreement settling all intercompany claims between the U.S. Debtors and Lehman
Hong Kong. The agreement, which is subject to approval in the U.S. Chapter 11
and Hong Kong proceedings later this year, settles over $20 billion of complex
intercompany relationships between LBHI's U.S. debtors and nine Hong Kong
entities in liquidation.

LBHI has also secured the support of Lehman Hong Kong for its Second Amended
Joint Chapter 11 Plan and Disclosure Statement. The Liquidators of Lehman's Hong
Kong entities now join the Unsecured Creditors Committee and other creditor
groups representing over $100 billion in claims in support of LBHI's plan.

Edward Middleton, Partner, KPMG China, and one of the Hong Kong Liquidators,
said: "This is a genuinely exciting development. It is a quantum leap in the
progress of the Hong Kong liquidations, and I am sure will assist our colleagues
in the U.S. as well. The settlement, achieved without litigation, provides
mechanics that will cut through many of the complexities of our multi-layered
relationships, and will thereby materially speed up the liquidations, which can
only be of benefit to our creditors."

Daniel Ehrmann, LBHI's head of international operations and co-head of
derivatives and a managing director at restructuring and professional services
firm Alvarez & Marsal, said: "This agreement is another milestone in the case --
it resolves more than $20 billion of intercompany claims and contributes
significantly to LBHI's recoveries. As we have consistently stated, we remain
focused on negotiating settlements with our international affiliates and to
bringing the Estate's plan to a vote and confirmation by year end."

The Lehman Brothers bankruptcy is the largest and most complex in history.
Before the bankruptcy, Lehman Brothers had over $630 billion of assets on its
balance sheet and operated as a truly global firm with over 7,000 legal entities
in more than 40 countries. Its global cash management system, organizational
structure, product lines and operating platforms resulted in numerous
cross-border and cross-entity interdependencies. Lehman's insolvency has
resulted in over 75 separate and distinct bankruptcy proceedings, with the
non-United States proceedings managed by a number of court appointed
administrators, liquidators, trustees, receivers, and like office holders.

LBHI and its affiliated chapter 11 debtors, through their restructuring advisers
at Alvarez & Marsal and their attorneys at Weil, Gotshal & Manges LLP, filed the
Second Amended Joint Chapter 11 Plan and Disclosure Statement with the United
States Bankruptcy Court for the Southern District of New York on June 28, 2011.
These filings can be found at www.lehman-docket.com in the key documents
section. To date, more than 30 creditor groups representing claims of over $100
billion have signed plan support agreements. The U.S. Chapter 11 debtors will be
seeking the Bankruptcy Court's approval of the Plan and Disclosure Statement at
a hearing scheduled to be held on August 30, 2011.

SOURCE: Lehman Brothers Holdings Inc.



CONTACT:
KPMG China
Nina Mehra, [phone]
[e-mail]
or
LBHI
Kimberly Macleod, 646-285-9215
[e-mail]
or
Linden Alschuler Kaplan PR
Steven Alschuler, 212-575-4545
[e-mail]
ct/Agreement