Replies to post #108992 on Lehman Brothers Financial SA (LEHNQ)

[Docsavag]

Cotton, likely a dumb question...if we are on PAR with ECAPS, then why wouldn't our Trustee interject here to have equal standing?

[cottonisking]

DB and Others are on GP1 Committee (jackpot$$$$)::

Alternative Outcome? Secret

i. 94% to GP1; and. 👈️ Winner/share
ii. 6% to LBHI.

ii. Tier Y: (Subject to the Tier Y Distribution Conditions
below) the Parties agree that the next £225m of
Available Funds after payment of the Tier X Distributions
in full shall be distributed to GP1 and LBHI as applicable
pro rata between GP1 and LBHI as and when funds
become available for distribution by the PLC
Administrators, (the “Tier Y Distributions”):
a. If GP1 and/or DB prevail in relation to Priority
Legal Issue 1 (in the form of a final and nonWITHOUT PREJUDICE
SUBJECT TO CONTRACT
4
appealable order or decision of the
court/appellate court having the effect that
statutory interest payable on the claim in respect
of the PLC Sub-Notes (“Claim D”) falls to be paid
in priority to the principal amount of the PLC
Sub-Debt (“Claim C”) (an “ECAPS Outcome”)), to
be applied:
i. 94% to GP1; and
ii. 6% to LBHI.

Resource:

WITHOUT PREJUDICE
SUBJECT TO CONTRACT
3
“Individual Respondents” means each of Steven Anthony
Pearson, Anthony Victor Lomas, Derek Anthony Howell, Julian
Guy Parr, Ian David Green, Russell Downs, Edward John
Macnamara, Gillian Eleanor Bruce, and David James Kelly;
“Letter of Support” means a letter of support in similar form to
that attached at Schedule 1;
“Partial Discharge Issue” means the application (if any) of the
Court of Appeal’s decision in Re LB Holdings Intermediate 2 Ltd
[2021] EWCA Civ 1523 to the claims of unsubordinated creditors
whose claims have been admitted in the administration of PLC
and have also received payments from LBHI as guarantor of such
claims;
“Priority Legal Issues” are as numbered in the ECAPS 2
Application; and
“Winter Garden – LBL Claim” means the claim asserted in a proof
of debt submitted by Winter Garden Inc. in the administration of
LBL in the amount of £1,028,934.10 which is yet to be adjudicated
by the LBL Administrators.
3 Agreement as to
distributions to
subordinated creditors of
PLC and the ECAPS Account
Holders (the “Agreed
Distributions”)
The Parties will agree that the PLC Administrators will distribute
the funds of PLC available for distribution to subordinated
creditors of PLC (“Available Funds”) according to the following
scheme:
i. Tier X: (Subject to the Tier X Distribution Conditions
below) the first £187.4m of Available Funds shall be
distributed to GP1 and LBHI in the order of priority and
the proportions set out below (the “Tier X
Distributions”):
a. First, GP1 to be paid 92% (the “GP1 Tier X
Distribution”); and
b. Second, LBHI to be paid 8% (the “LBHI Tier X
Distribution”).
ii. Tier Y: (Subject to the Tier Y Distribution Conditions
below) the Parties agree that the next £225m of
Available Funds after payment of the Tier X Distributions
in full shall be distributed to GP1 and LBHI as applicable
pro rata between GP1 and LBHI as and when funds
become available for distribution by the PLC
Administrators, (the “Tier Y Distributions”):
a. If GP1 and/or DB prevail in relation to Priority
Legal Issue 1 (in the form of a final and nonWITHOUT PREJUDICE
SUBJECT TO CONTRACT
4
appealable order or decision of the
court/appellate court having the effect that
statutory interest payable on the claim in respect
of the PLC Sub-Notes (“Claim D”) falls to be paid
in priority to the principal amount of the PLC
Sub-Debt (“Claim C”) (an “ECAPS Outcome”)), to
be applied:
i. 94% to GP1; and
ii. 6% to LBHI.
b. If LBHI prevails in relation to Priority Legal Issue 1
(in the form of a final and non-appealable order
or decision of the court/appellate court having
the effect that the principal amount of Claim C
falls to be paid in priority to statutory interest
payable on Claim D) (an “LBHI Outcome”), 100%
to LBHI.
Once Tier Y Distributions in respect of (a) or (b) above
have been made which total £225m (the “Maximum
Tier Y Distributions”), any further distributions shall
be Tier Z Distributions (defined below).
iii. Tier Z: (subject to the Tier Z Distribution Condition) any
and all further Available Funds after payment of the Tier
X Distributions and the Maximum Tier Y Distributions in
full will be distributed by the PLC Administrators as
follows:
a. If there is an ECAPS Outcome in relation to
Priority Legal Issue 1, to be split 42% (GP1) and
58% (LBHI);
b. If there is an LBHI Outcome in relation to Priority
Legal Issue 1, to be split 12% (GP1) and 88%
(LBHI);
(the “Tier Z Distributions”).
The Parties will use reasonable endeavours to agree and
incorporate into the Framework Agreement provision as to the
economic split of Tier Y and Tier Z in the event that, at the
conclusion of the current court directions application process
(including any appeals) there is neither an ECAPS Outcome nor an
LBHI Outcome to Priority Legal Issue 1. If the Parties are unable to
agree such split by the time of signing the Framework Agreement,
the Framework Agreement shall include a provision requiring the
Parties in such a scenario to consult and negotiate in good faith to
reach agreement as to the distribution of Tier Y and Tier Z
consistent with the Framework Agreement and any judgment or
order which the court/appellate court may have made on Priority
Legal Issue 1.