Lehman Brothers Holdings Capital Trust V (LHHMQ)

[eet2]

T}{N SA}-IK OF NEW YSRK Mfil"l,ON
Default Administration Group
101 Barclay Street - 8W
New York, NY 10286
July 25,2011
NOTICE
TO
HOLDERS
OF
Prefened Securities
Lehman Brothers Holdings Capital Trust V
6.00% Preferred Securities, Series M
(CUSIP No. r: 52520E2001
Guaranteed by Lehman Brothers Holdings Inc.
Each Holder of the above-referenced securities (the "Securities") should forward a copy of this
Notice immediately to any beneficial owner(s) of the Securities for whom the Holder acts as
nominee or in any other capacity.
The Bank of New York Mellon (as successor to the initial Property Trustee, JPMorgan
Chase Bank, N.A.) is the Property Trustee (the "Trustee") under the Amended and Restated Declaration
of Trust of Lehman Brothers Holdings Capital Trust IV, dated as of October 31,2003 (the "Indenture"),
which governs the Securities. Lehman Brothers Holdings lnc. ("LBHI") guaranteed payment under the
Securities on the terms and conditions provided in the Guarantee Agreement, dated as of October 31,
2003 (the "Guarantee"). Under the Indenture, the Trustee holds $300,000,000 6.375% Subordinated
Defenable Interest Debentures Due 2052 (the "Subordinated Debt Instruments") issued by LBHI under
that certain Indenture, dated as of February l, 1996 (the "Subordinated Debt Indenture"). The Bank of
New York Mellon (as successor to the original trustee, Chemical Bank) is the trustee (the "Subordinated
Debt Trustee") under the Subordinated Debt Indenture. Capitalized terms used herein that are not
olherwise specifically defined shall have the meanings for such terms setforth in the Indenture-
This notice is provided by the Trustee for informational purposes only. In giving this
notice, the Trustee makes no recommendations and gives no inveslment, business, legal or other advice as
to the matters set forth above. Holders should consult their own professional advisors regarding matters
related to the contents ofthis notice.
On September 21,2009, the Subordinated Debt T;'stee {llgd claim number 22123 against
LBHI in its role as Subordinated Debt Trustee, on behalf of the trust, as a holder of the Subordinated Debt
I
CUSIP nurbrrs are included solely tbr convenlence. 'l rustee is not responsrble for selection or use of CUSIP numbers
WO2-EAST:7DAD1U0038532 1.2 -1-
Instruments (the "Trustee Claim"). The Securities represent ownership interests in such trust, which in
turn holds the Subordinated Debt Instruments.
On June 29,2011, Lehman Brothers Holdings Inc., a Delaware corporation ("LBHI"), the
obligor under the Subordinated Debt Instruments, and its affiliated debtors (collectively, the "Debtors") in
the Chapter I I proceedings (the "Bankruptcy Proceedings") being administered as case number 08-13555
in the United States Bankruptcy Court for the Southern District of New York (the "Court"), filed an
amended motion for approval of their proposed Disclosure Statement and procedures (the "Procedures
Motion") for confirmation of the Second Amended Joint Chapter I I Plan that was filed by the Debtors
with the Court on June 30, 201I (the "Plan"). The hearing on the Debtors'proposed Disclosure Statement
is currently scheduled to be heard by the Court on August 30, 201 l.
Under the Procedures Motion, the Debtors have proposed a timetable for confirmation of
the Plan which estimates that the deadline for objections and/or responses to the Plan will be due in
November of 201 L The Debtors have proposed a treatment of the claims of the holders of the
Subordinated Debt Instruments that are held by the Trust, including the Trustee Claim, which are
classified under the Plan as members of LBHI Class | 0B under the Plan. As proposed in the Plan, the
holders of the Subordinated Debt Instruments, as members of LBHI Class l0B, will not be entitled to
receive any distributions on account of their allowed claims unless and until the holders of senior
unsecured claims against LBHI (LBHI Class 3), senior affrliate claims against LBHI (LBHI Class 4A),
senior affiliate guarantee claims against LBHI (LBHI Class 4B), and senior third-party guarantee claims
against LBHI (Class 5) are satisfied in full. Assuming the Plan is confirmed as currently proposed, it is
not anticipated that the Debtors will have sufficient assets to satisfu in full the claims of those senior
classes, and as such, the Subordinated Debt Trustee, as holder of the Subordinated Debt Instruments, is
not expected to receive any distribution under the Plan on account of the Trustee Claim. In addition, the
Subordinated Debt Trustee, as a member of LBHI Class l0B under the Plan is not entitled to vote to
accept or reject the Plan on behalf of the trust, and is treated by the Debtors as having conclusively
rejected the Plan.
Holders of the Securities with questions may contact the Trustee by email at
[e-mail]. Holders should not rely on the Trustee as their sole source of
information. Holders of Securities may access pleadings filed in the Bankruptcy Proceeding, including
the Plan and Disclosure Statement, at http://chapterl l.epiqsystems.com. Additional information is also
available on the website of the OfficialCommittee of Unsecured Creditors (www.lehmancreditors.com).
Holders of Securities that would like to participate in the Bankruptcy Proceeding should consult with their
own legaladvisors.
The Bank of New York Mellon
as Trustee
W02.EAST:?DAD1U0038532 1.2 -2-