Replies to post #48094 on Lehman Brothers Financial SA (LEHNQ)

[hestheman]

Joe...you are simply interpreting this wrong. You just basically stated that CTs are NOT a guarantee claim but rather an allowed claim under class 10B, correct? That, I agree with. However, you are somehow interpreting this excerpt to mean that the distribution is only going to holders that have guarantee claims against LBHI. That is NOT correct. Why don't you try reading the excerpt this way >> The investments will make immediately available for distribution to holders of Allowed claims against LBHI, including holders of Allowed Claims against LBSF and LBCC with corresponding Guarantee Claims against LBHI. If you can interpret the excerpt this way, we can "all feel better having learned something".

[chaarles]

Full DD on claim 66455: All docs are a MUST read.....

Claim 66455:
http://dm.epiq11.com/LBH/Document/GetDocument/2375241

Exhibit C:





CDA LBHI/JPM:

http://dm.epiq11.com/LBH/Document/GetDocument/1143924

Transfer of claim 66455 from JPM to LBHI pursuant to the CDA:



Motion for Authorization for Lehman Brothers Special Financing Inc. and Lehman Brothers Commercial Corporation to Invest Disputed Claims Reserves for Claim Numbers 66455 and 66476

http://dm.epiq11.com/LBH/Document/GetDocument/2513990

Declaration of William A. Olshan in Support of Motion for Authorization for Lehman Brothers Special Financing Inc. and Lehman Brothers Commercial Corporation to Invest Disputed Claims Reserves for Claim Numbers 66455 and 66476

http://dm.epiq11.com/LBH/Document/GetDocument/2516578

[cottonisking]

The Guarantee and 1996 indenture (Article Eight) was broken when substantially the crown jewel of Lehman Brothers, LBI (changed the nature of LBHIs business) was sold to Barclays, without Barclays assuming the CTs or putting the CTs money into an escrow account. JPMCB, as Guarantee Trustee and codebtor, is holding the CTs money (LBHI collateral) because they failed to collect it from Barclays. Read my previous 50 posts and you will see the written facts.

1.62 Guarantee Claim means a Claim asserted against LBHI on the basis of a
guarantee, promise, pledge, indemnity or similar agreement by LBHI (a) to satisfy an obligation
or liability of another entity or (b) with respect to asset values, collection or net worth of another
entity.

The LBHI/JPMCB CDA specify the indemnity.


***Docket 46073***

9. JPMCB filed (a) claim number 66455 against LBSF (the “LBSF Claim”)
asserting claims in the net unsecured amount of approximately $1.7 billion, and (b) claim
number 66476 against LBCC (the “LBCC Claim”) asserting claims in the net unsecured amount
of $125 million, for a total unsecured claim amount of approximately $1.825 billion. These
amounts are net of JPMCB’s setoff of approximately $410 million in funds belonging to LBSF
with respect to the LBSF Claim and further reductions of approximately $220 million of the
LBSF Claim and the LBCC Claim based upon JPMCB’s setoff of amounts due to LBSF or
LBCC from JPMCB’s affiliates, which setoffs are contested by LBSF and LBCC. JPMCB also
filed claim number 66462 against LBHI (the “LBHI Claim” and, together with the LBSF Claim
and the LBCC Claim, the “JPMCB Claims”), asserting that LBHI is a guarantor of the LBSF
Claim and the LBCC Claim and that such guarantee obligations are secured by collateral
pursuant to a Security Agreement dated September 9, 2008.

The Investments will make immediately available for distribution to holders of
Allowed Claims against LBHI, including holders of Allowed Claims against LBSF and LBCC
with corresponding Guarantee Claims against LBHI, amounts – over $560 million, plus any
additional amounts to be reserved on account of the LBSF Claim and the LBCC Claim in
connection with future Distributions – that otherwise would become available only after the
disputes with JPMCB are resolved at some unknown future date. This accelerated Distribution
will provide substantial benefit to the creditors of LBHI and creditors of LBSF and LBCC
holding allowed Guarantee Claims against LBHI.

******


THE BANK OF NEW YORK MELLON
Default Administration Group
101 Barclay Street- 8W
New York, NY 10286
July 25, 2011
NOTICE
TO
HOLDERS
OF
Preferred Securities
Lehman Brothers Holdings Capital Trust V
6.00% Preferred Securities, Series M
(CUSIP No. I: 52520E200)
Guaranteed by Lehman Brothers Holdings Inc.
Each Holder ofthe 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 Inc. ("LBHI") guaranteed payment under the
Securities on the terms and conditions provided in the Guarantee Agreement, dated as of October 3 1,
2003 (the "Guarantee"). Under the Indenture, the Trustee holds $300,000,000 6.375% Subordinated
Deferrable Interest Debentures Due 2052 (the "Subordinated Debt Instruments") issued by LBHI under
that certain Indenture, dated as of February 1, 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
_______ .otherwise specifically defined.shall have the meanings for such terms.setforth.in.the.Indenmre.L. _
This notice is provided by the Trustee for informational purposes only. In giving this
notice, the Trustee makes no recommendations and gives no investment, 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 of this notice.
On September 21,2009, the Subordinated Debt Trustee filed claim number 22123 against
LBHI in its role as Subordinated Debt Trustee, on behalf of the trust, as a holder of the Subordinated Debt
1 CUSIP numbers are included solely for convenience. Trustee is not responsible for selection or use ofCUSIP numbers.
W02-EAST:Instruments (the "Trustee Claim"). The Securities represent ownership interests in such trust, which in
tum 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 11 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 11 Plan that was filed by the Debtors
with the Court on June 30,2011 (the "Plan"). The hearing on the Debtors' proposed Disclosure Statement
is currently scheduled to be heard by the Court on August 30, 2011.
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 20 11. 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 LBI-ll Class 10B under the Plan. As proposed in the Plan, the
holders of the Subordinated Debt Instruments, as members of LBHl Class lOB, 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 affiliate claims against LBHI (LBHI Class 4A),
senior affiliate guarantee claims against LBHI (LBHl 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 satisfy 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 ofLBHI Class lOB 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://chapterIl.epiqsystems.com. Additional information is also
available on the website of the Official Committee of Unsecured Creditors (www.lehmancreditors.com).
Holders of Securities that would like to participate in the Bankruptcy Proceeding should consult with their
own legal advisors.
The Bank of New York Mellon
as Trustee
W02-EAST: