Replies to post #69830 on Lehman Brothers Financial SA (LEHNQ)

[VivaLasVegas]

Pay Up!

[indepth05]

Lehman Ends $1B Spat Over GreenPoint RMBS

By Jonathan Randles
Law360, New York (September 20, 2016, 7:47 PM EDT) -- A New York judge on Tuesday approved a settlement that significantly reduces a $1.3 billion claim brought by insurer Syncora Guarantee Inc. against the Lehman Brothers bankruptcy estate over faulty residential mortgage-backed securities originating from GreenPoint Mortgage Funding Inc.

The settlement, approved by U.S. Bankruptcy Judge Shelley Chapman, will reduce the size of Syncora’s claim against Lehman to $37 million. The deal also releases Lehman from potential claims brought by U.S. Bank NA, indenture trustee to a securitized trust consisting of more than 29,000 GreenPoint loans....

[inesdefilia]

"Syncora filed its own claim for indemnification against Lehman as sponsor of the securitization." Dont You?!

On September 20, 2016, Judge Shelley Chapman of the U.S. Bankruptcy Court for the Southern District of New York approved the $37 million settlement of $1.3 billion in claims asserted against the estates of two defunct Lehman Brothers’ entities by Syncora Guarantee Inc. in its capacity as the insurer for certain certificates issued from the GMFT 2006-1 RMBS trust. After being sued by the GMFT 2006-1 Trustee for payment under the insurance policy, Syncora filed its own claim for indemnification against Lehman as sponsor of the securitization. In addition to settling Syncora’s claim, the agreement also releases Lehman from all potential claims brought by the GMFT 2006-1 Trustee, U.S. Bank NA, in exchange for Lehman’s cooperation in a separate lawsuit arising from GreenPoint Mortgage Funding Inc.’s alleged failure to repurchase defective loans. Settlement Order. Settlement Agreement Submitted For Approval.

http://www.jdsupra.com/legalnews/lehman-estate-settles-claims-by-rmbs-90274/

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First, ACDU could file a claim based on the guarantee. But the time period for doing so expired and the Company would have needed to retain legal counsel to obtain a waiver of the deadlines for investors who bought the Capital Trust shares on the open market after the claims period expired. Second, ACDU could have made a demand on the trustee to seek assistance from the Court to extend the deadline and then submit a claim on behalf of the trust

Reply |[e-mail] to ACDU
Mar 29 (2 days ago)

After consultation with our legal counsel regarding this matter, we understand that the guarantee supporting the equity shares issued by each of the Lehman capital trusts are limited guarantees. The guarantees are limited solely to the assets in the trust -- i.e., the Lehman subordinated debt for which The Bank of New York Mellon serves as indenture trustee. Please refer to the limited guarantee. As you are aware, the Bank has filed proofs of claim on behalf of each of the Lehman capital trusts referenced in your email below with respect to these subordinated debt securities held by each of the trusts. Any recovery by such trusts under a plan of reorganization would be based on such claims. The guarantee has value only to the extent the claim is realized.

https://www.sec.gov/Archives/edgar/data/933425/000093342510000009/acdu0330.htm