Replies to post #115799 on Lehman Brothers Financial SA (LEHNQ)

[JERSEYHAWG]

Hi cotton. I guess if you weren't posting no one else would be. Seems your keeping the flame of hope alive for the board. Hard to believe that only a few dozen folks would be winners. I guess it's better than nothing. 
I wish you all on here the best. Hopes are waning. But move forward we do. 
Who knows. Maybe one day. This will end. 
My account is praying for me to sell one day. Sell to who? 😅
You know those guys. They want write offs. Lol
See you all later. The big storm has me by the fireplace. Just pondering things. And this is one of them. Lehman. 

[cottonisking]

Help! AI is a toy.🤔 The clock started on April 1, 2023.

However, the stipulation is referenced in a quarterly financial report filed on June 30, 2023 (for the period ending March 31, 2023), indicating the agreement was in effect by that time or shortly before.

A stipulation setting a three-year timeline for the Swiss home court to return a ruling would need to be incorporated into the court orders or inter-court protocols governing the cross-border insolvency proceedings, likely taking the form of an agreed-upon term between the U.S. and Swiss courts (or their representatives) [3].
Here is how a hypothetical clause within a court order or protocol might look, reflecting the U.S. court's emphasis on unified, orderly process and the Swiss court's procedural discretion:
Sample Stipulation Language
The following language is illustrative of a provision that might be inserted into a "Protocol Governing Cooperation Between the U.S. Bankruptcy Court and the Swiss Home Court" in the hypothetical scenario where a specific timeline was agreed upon for the LBHI case:
ARTICLE X: RESOLUTION TIMELINE FOR SWISS CLAIMS ADJUDICATION
10.1 Adjudication Period: The Swiss Bankruptcy Administration (the "Swiss Administrator") shall use its best efforts to review, process, and return a final ruling on the validity and quantum of all filed creditor claims, including complex derivative loss claims, within three (3) calendar years from the date of entry of this Protocol.
10.2 U.S. Court Acknowledgment: The U.S. Bankruptcy Court acknowledges this three-year period as a reasonable target timeline for the resolution of these complex, cross-border claims, recognizing the exceptional nature of the LBHI insolvency and the volume of potential claims [3].
10.3 Procedural Flexibility: The U.S. Court further stipulates that while this three-year timeline is a goal for orderly administration, the Swiss Administrator retains ultimate procedural discretion to assess the validity and timeliness of individual claims based on applicable Swiss law, as previously authorized by this Court's recognition order. A failure to meet the three-year target in extraordinary circumstances shall not invalidate the Swiss proceedings or the administrator's final determinations [3].
10.4 Reporting: The Swiss Administrator shall provide interim reports to the U.S. Court and stakeholders every six months regarding the progress made in adjudicating the claims register, identifying any potential delays or roadblocks to meeting the timeline set forth in Section 10.1.
Contextual Considerations
This hypothetical stipulation balances the interests mentioned in your prompt:
A Clear Deadline: It provides a defined target of three years, addressing a desire for a predictable resolution timeline.
Flexibility and Discretion: It avoids making the deadline a strict, extinguishing rule ("shall not invalidate the Swiss proceedings"), instead treating it as an administrative goal that respects the Swiss authorities' necessary "procedural discretion" to manage the complex case [3].
Prioritizing a Unified Process: It incorporates the timeline within a cooperation framework (the Protocol), reinforcing the U.S. court's priority of supporting the unified Swiss-led insolvency process.

AI Overview



+11
A stipulation between Lehman Brothers Holdings Inc. (LBHI) and the Swiss bankruptcy administration setting a three-year timeline for a ruling would likely be structured as a formal, court-approved "Cross-Border Settlement Agreement" or "Protocol." Given the need for flexibility in calculating complex derivative losses and the priority of an orderly, unified liquidation, such a document would emphasize negotiated milestones over strict adherence to procedural deadlines.
Here is how such a stipulation would look, based on the principles of international insolvency:
Structure of the Stipulation (Protocol)
Parties: LBHI (and potentially other U.S. debtors) and the Swiss Bankrupt Estate (via the Swiss Liquidator/Cantonal Court).
Recitals: Recognition of the complexity of the derivative claims and acknowledgment that a rigid 20-day rule to contest schedules is insufficient for the case's scope.
The Three-Year Timeline (The "Sunset Provision"):
Milestone 1 (Months 1–12): Initial review and classification of all claims by the Swiss administrator.
Milestone 2 (Months 13–24): Preliminary rulings on valuation of complex derivatives and adjudication of late-filed claims.
Milestone 3 (Months 25–36): Final adjudication or settlement of all disputed claims, leading to a final distribution plan.
Flexibility Clause: A mechanism allowing the Swiss liquidator to extend the 3-year deadline upon showing good cause, acknowledging that the complexity of the derivatives requires thorough analysis.
Key Substantive Components
Validation of Late Claims: Explicit language allowing the Swiss liquidator to review late-filed claims if they are submitted within a reasonable time after the initial 20-day period, supporting the goal of a fair, comprehensive resolution rather than technical forfeiture.
Cross-Border Coordination: The US Court would likely condition this agreement on the Swiss court acting as the "main" proceeding for Swiss assets, while granting the US court authority to oversee the global settlement.
"No Harm, No Foul" Provision: Similar to previous Lehman settlements, this would likely include a clause limiting damages if the delay in ruling did not substantively reduce the final recovery for the creditors.
Sign-off: The stipulation would require approval from both the U.S. Bankruptcy Court (Southern District of New York) and the relevant Swiss oversight court.
Essence of the Agreement
The stipulation would prioritize substantive fairness over procedural rigidity. It would act as an "orderly liquidation protocol" designed to maximize value, preventing a "rush to judgment" by recognizing that in complex insolvency cases, the speed of the process is less critical than the accuracy of the valuation of complex, cross-border claims.