Lehman Brothers Financial SA (LEHNQ)

[jwnoble3]

Docket 40520 is a very interesting read. It appears some higher creditors want more of an inside view on a proposed transaction ("the sale"). It is on the courts agenda tomorrow and its not only the ad hoc group that wants a peek.


http://dm.epiq11.com/LBH/Docket#Debtors=1906&DocketNumber=40520&RelatedDocketId=&ds=true&maxPerPage=25&page=1

Opening statement fromthe docket:

The Group, which is comprised of major LBHI creditors, has been actively involved in these cases since nearly their inception and, in that context, has been keenly focused on maximizing the value of the LBHI estate. The Group has great respect for the estate and its professionals, who have worked hard to liquidate the LBHI estate’s assets for the benefit of its creditors. After careful consideration, however, and in light of the unique facts and
circumstances presented, the Group has determined to file this Statement in response to the Motion to support a process to evaluate whether the LBHI estate and its creditors will receive the highest and best value achievable from the Proposed Transaction.

2. The Proposed Transaction and the limited facts available regarding it raise concerns that should be addressed by the Court. The sale process appears to have been a “closed” process where competing bids were not, and absent this Court’s intervention, will not be considered. This is in stark contrast to the processes typically employed by liquidating estates
seeking to maximize value. As just one example, it is contrary to the process recently utilized by LBHI to sell its claims against Lehman Brothers Inc. As well, upon information and belief the
terms of the Commitment Letter preclude LBHI from considering any other offer. The lack of transparency and inability of LBHI to seek to maximize the value of the Claims is, not surprisingly, of great concern to the Group.