67. I was a Stockholder prior to the filing, what happened to my stock?
On the Effective Date (March 6, 2012), the LBHI common and preferred stock were cancelled and
one new share of LBHI common stock was issued to the Lehman Brothers Holdings Inc. Plan
Trust (the “LBHI Plan Trust”) which will hold such share for the benefit of the former holders of
LBHI common and preferred stock consistent with their former relative priority and economic
entitlements. In place of your old shares, an escrow position was created to act as a placeholder
in your account and to represent your beneficial interest in the LBHI Plan Trust and your indirect
interest in the new share of LBHI common stock for any potential future distributions. The
beneficial interests in the LBHI Plan Trust held by former LBHI stockholders are uncertificated,
non-voting, and nontransferable other than by will or by the laws of descent and distribution. The
escrow position will correspond to the number of old shares you held as of the Effective Date
consistent with your former relative priority and economic entitlements. The Plan states that in
the event that all Allowed Claims in LBHI Classes 1 through 11 have been satisfied in full in
accordance with the Bankruptcy Code and the Plan, each holder of an Equity Interest (as defined
in the Plan) in LBHI may receive its share of any remaining assets of LBHI consistent with all
rights and priorities existing immediately prior to the commencement of the chapter 11 cases. At
this time it is not anticipated that any distribution will be made to the LBHI Plan Trust or to any
beneficiary of the LBHI Plan Trust.
68. What do I do with my stock certificates?
As the stock was cancelled pursuant to the Plan, you are not required to take any action with
respect to the stock you hold.
69. I now hold a beneficial interest in the LBHI Plan Trust.
a. What does this mean? It means you have an escrow position or a “placeholder” for any
potential future distributions by the LBHI Plan Trust resulting from any distributions
received by the LBHI Plan Trust in respect of the single share of LBHI common stock it
holds.
b. What is an escrow CUSIP? A CUSIP number is a unique identifier assigned to a
particular security. An escrow CUSIP is a placeholder representing the amount of shares
held by the former holders of equity interests or the principal amount held by former holders
of notes. An escrow CUSIP is not an “official” security designation, and it is created solely
for record-keeping purposes. The escrow CUSIP number shall only represent the right of
such holder to receive potential future distributions under the Plan on account of the old or
cancelled securities or as holders of beneficial interests in the LBHI Plan Trust.
c. Is it worth anything? The Plan states that in the event that all Allowed Claims in LBHI
Classes 1 through 11 have been satisfied in full in accordance with the Bankruptcy Code
and the Plan, each holder of an Equity Interest in LBHI may receive its share of any
remaining assets of LBHI. At this time it is not anticipated that any distribution will be made
to any holder of an Equity Interest in LBHI. Additionally, the beneficial interests in the LBHI
Plan Trust are non-transferable and non-voting.
d. Do I receive any evidence of this interest? No. The interests in the LBHI Plan Trust are
not certificated. The evidence is in the form of the escrow CUSIP position that will
correspond to the number of old shares held as of the Effective Date consistent with their
former relative priority and economic entitlements.
e. Will it show up on my brokerage statement? This depends on the firm, but generally
the answer is yes, under an escrow CUSIP position that will mirror the number of old shares
held as of the Effective Date consistent with their former relative priority and economic
entitlements.
f. Can I trade it? No. The beneficial interests in the LBHI Plan Trust are non-transferable.
The continuing rights of holders of Equity Interests (including through their interest in the
LBHI Plan Trust Stock or otherwise) shall be nontransferable except by will or under the
laws of descent and distribution.
g. Can I vote it? No. The beneficial interests in the LBHI Plan Trust are non-voting.
h. Tax Considerations. The following questions and answers are for general informational
purposes only. Holders are urged to consult their own tax advisors regarding the tax
consequences to them of the Plan and of being a beneficiary of the LBHI Plan Trust.
[color=red]What is the nature of the LBHI Plan Trust for tax purposes? The LBHI Plan Trust
is intended to be treated as a “liquidating trust” that is taxable as a “grantor trust” for
U.S. federal income tax purposes of which the former holders of LBHI common and
preferred stock are the grantors[/color]. For U.S. federal income tax purposes, the former
stockholders are treated as directly receiving an undivided interest in the single share
of LBHI common stock held by the LBHI Plan Trust and then transferring such interest
to the LBHI Plan Trust in exchange for the beneficial interests in the LBHI Plan Trust.
On a going-forward basis, each beneficiary of the LBHI Plan Trust will be treated for
U.S. federal income tax purposes as a direct owner of the underlying assets of the
LBHI Plan Trust (namely, the single share of LBHI common stock held by the LBHI
Plan Trust), in accordance with its former relative priority and economic entitlements
as a stockholder.
ii. Is the cancellation of LBHI stock taxable to holders? A former holder of LBHI
stock (common or preferred) should not recognize gain or loss for U.S. federal income
tax purposes solely by reason of the cancellation of its LBHI stock pursuant to the
Plan. As a beneficiary of the LBHI Plan Trust, each holder will continue to be
regarded as owning for U.S. federal income tax purposes a direct interest in the single
share of LBHI common stock held by the LBHI Plan Trust with the same relative
priority and economic entitlements as the LBHI stock previously held.
How is a beneficiary taxed on its beneficial interest in the LBHI Plan Trust? In
general, a beneficiary of the LBHI Plan Trust is taxed as if directly earning or incurring
any income, gain, deduction or loss in respect of its portion of the underlying assets
of the LBHI Plan Trust (regardless of whether any earnings are actually distributed).
In addition, the LBHI Plan Trust will comply with all applicable governmental
withholding requirements in respect of any amounts received or distributed.
Nevertheless, it is not expected that the LBHI Plan Trust will have any income or
deductions to report or will make any distributions.
Do I as a beneficiary have to provide any Tax ID information to the Plan Trust?
All holders of record -- i.e., in general, former stockholders whose shares were
registered in their name, in contrast to those who held their stock through a broker --
are required to provide to the LBHI Plan Trust a properly completed and executed
IRS Form W-9 (certifying as to their tax identification number) or, in the case of nonU.S. persons, a properly completed and executed IRS Form W-8. Specific
instructions regarding the submission of tax forms have been provided to former
stockholders of record and can be accessed at (www.lehman-docket.com). All other
holders will be notified by the Plan Trust if and when such information is required from
them.
v. How will beneficiaries of the LBHI Plan Trust receive information regarding the
LBHI Plan Trust for their tax returns? Within seventy-five (75) days following the
end of the calendar year or as soon as practicable thereafter, the trustees of the LBHI
Plan Trust will furnish to the beneficiaries the information regarding the income, gain,
loss, deduction or credit (if any) of the LBHI Plan Trust (as computed for U.S. federal
income tax purposes) for the calendar year just ended, by posting such information
at (www.lehman-docket.com).
70. As a former stockholder, am I entitled to a distribution?
If you previously held common stock or preferred stock of LBHI and, as a result, now hold a
beneficial interest in the LBHI Plan Trust, after all Allowed Claims in LBHI Classes 1 through 11
have been satisfied in full in accordance with the Bankruptcy Code and the Plan, and the LBHI
Plan Trust receives a distribution in respect of the single share of LBHI common stock it holds,
you may receive a distribution in respect of your beneficial interest in the LBHI Plan Trust. At this
time, it is not anticipated that any distribution will be made to the LBHI Plan Trust or to any holder
of an Equity Interest in LBHI. For all other Plan Classes, please refer to the Plan.
71. If a distribution is made to former stockholders (now holders of beneficial interests in the
LBHI Plan Trust), how will I know?
If you held your Class 12 Interests in a brokerage account, the distribution will be deposited into
your account. If you held your Class 12 Interest as a registered holder in your own name,
notification will be made.
72. My broker does not want to hold my beneficial interest anymore. Can I convert to record
name?
No. There will not be any mechanism for converting your position to record name.
73. I just moved. Should I submit a change of address? To whom?
Yes, you should submit a change of address. Where you send the change of address request
depends on where your claim or securities are held. When making the notification include your
name on the account, your old address, your new address, date the change is effective and a
phone or email address in the event there are questions, as well as any account numbers or
other identifying information.
a. If you held securities, either stock or bonds through a brokerage account you should
contact your broker.
b. If you were a registered (or record) stockholder, holding the stock in your own name and
did not hold it through a broker, please contact the stock transfer agent.
For Old Common Stock
Computershare (formerly BNY Mellon)
1-800-824-5707
For Old Preferred Shares
Computershare
1-877-373-6374
c. If you have a filed proof of claim, then you should notify Epiq. Write to:
Lehman Brothers Holdings Noticing Agent
Epiq
777 Third Avenue, 12th Floor
New York, NY 10017
Or email lehmancallcenter@epiqglobal.com
74. I held preferred stock. Is my beneficial interest different than the beneficial interest that a
common stockholder received?
The common stock and the preferred shares were both classified as Class 12 Equity Interests
under the confirmed Plan and both are treated similarly under the Plan. The beneficial interests
in the LBHI Plan Trust corresponding to the cancelled common and preferred stock of LBHI shall
maintain their former relative priority and economic entitlements of such common and preferred
stock
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