UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 23, 2016
LEHMAN BROTHERS HOLDINGS INC. PLAN TRUST
(Exact name of registrant as specified in its charter)
Delaware | 1-9466 | 30-6315144 | ||
(State or other jurisdiction Of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1271 Avenue of the Americas
New York, New York
10020
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (646) 285-9000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01 Regulation FD Disclosure.
As previously disclosed, on September 15, 2008, Lehman Brothers Holdings Inc. (LBHI) filed a voluntary petition for relief under Chapter 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). Together with the Chapter 11 cases thereafter filed by certain subsidiaries (collectively with LBHI, the Debtors), the cases are being jointly administered under the case caption In re Lehman Brothers Holdings Inc., et. al., Case Number 08-13555 (the Chapter 11 Proceeding) pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure. On March 6, 2012, the Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. and its Affiliated Debtors (the Plan) became effective.
As contemplated under the Plan, on March 23, 2016, LBHI, the Plan Administrator, filed the Quarterly Financial Report as of December 31, 2015, which includes Balance Sheets and Accompanying Schedules (collectively, the Quarterly Financial Report) of LBHI and Other Debtors and Debtor-Controlled Entities (collectively, the Company) with the Bankruptcy Court. A copy of the court filing is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K.
Limitation on Incorporation by Reference
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Cautionary Statements Regarding Financial and Operating Data
The Company cautions the reader not to place undue reliance upon the information contained in the Quarterly Financial Report, as it is not prepared for the purpose of providing the basis for an investment decision directly or indirectly relating to the Company or any of its securities. The Quarterly Financial Report is not prepared in accordance with U.S. generally accepted accounting principles, is not audited or reviewed by independent accountants, will not be subject to audit or review by external auditors at any time in the future, is in a format consistent with applicable bankruptcy laws, and is subject to future adjustments and reconciliations. There can be no assurances that the Quarterly Financial Report is accurate or complete. The Quarterly Financial Report contains a further description of limitations on the information contained therein. The Quarterly Financial Report also contains information which might not be indicative of the Companys financial condition. Results set forth in the Quarterly Financial Report should not be viewed as indicative of future results.
Cautionary Statement Regarding Forward-Looking Statements
This Current Report on Form 8-K and Exhibit 99.1 hereto may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Companys financial condition, results of operations, and business that is not historical information. Forward-looking statements reflect the Companys current views with respect to future events as well as various estimates, assumptions and comparisons based on available information up to the date of this report, many of which are subject to risks and uncertainties. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including all statements regarding information regarding the intent, belief or current expectation of the Company and members of its management. The words believe, expect, plan, intend, estimate, or anticipate and similar
expressions, as well as future or conditional verbs such as will, should, would, and could, often identify forward-looking statements. These statements speak only as of the date hereof and involve known and unknown risks, uncertainties and other factors, including factors which are outside the Companys control, which may cause the Companys actual condition, results, performance or achievements to be materially different from any future condition, results, performance or achievements expressed or implied by these forward-looking statements. Such factors include, without limitation, the potential adverse impact of the Chapter 11 Proceeding on the Companys liquidity or results of operations. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, but reserves the right to do so. Readers of this report should not place undue reliance on these forward-looking statements.
The Companys informational filings with the Bankruptcy Court, including the Quarterly Financial Report included in Exhibit 99.1, are available to the public at the office of the Clerk of the Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, New York 10004-1408. Such informational filings may be available electronically, for a fee, through the Bankruptcy Courts Internet world wide web site (www.nysb.uscourts.gov), and/or free of cost, at a world wide web site maintained by the Companys Bankruptcy Court-approved noticing agent (www.lehman-docket.com).
ITEM 9.01 Financial Statements and Exhibits.
(d) | Exhibits |
99. 1 | Quarterly Financial Report as of December 31, 2015, which includes Balance Sheets and Accompanying Schedules of Lehman Brothers Holdings Inc. and Other Debtors and Debtor-Controlled Entities. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Lehman Brothers Holdings Inc. Plan Trust has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LEHMAN BROTHERS HOLDINGS INC. PLAN TRUST
By Lehman Brothers Holdings Inc. as Plan Administrator | ||||||
Date: March 23, 2016 |
By: | /s/ Kristine Dickson | ||||
Name: | Kristine Dickson | |||||
Title: | Executive Vice President - Finance |
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Quarterly Financial Report as of December 31, 2015, which includes Balance Sheets and Accompanying Schedules of Lehman Brothers Holdings Inc. and Other Debtors and Debtor-Controlled Entities. |
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
In re:
|
Chapter 11 Case No. | |
Lehman Brothers Holdings Inc., et al., | 08-13555 | |
Jointly Administered | ||
Debtors. |
QUARTERLY FINANCIAL REPORT
AS OF DECEMBER 31, 2015
BALANCE SHEETS AND ACCOMPANYING SCHEDULES
DEBTORS ADDRESS: | LEHMAN BROTHERS HOLDINGS INC. | |
c/o KRISTINE DICKSON, EXECUTIVE VICE PRESIDENTFINANCE | ||
1271 AVENUE OF THE AMERICAS | ||
40th FLOOR | ||
NEW YORK, NY 10020 | ||
DEBTORS ATTORNEYS: | WEIL, GOTSHAL & MANGES LLP | |
c/o JACQUELINE MARCUS, GARRETT A. FAIL | ||
767 FIFTH AVENUE | ||
NEW YORK, NY 10153 | ||
REPORT PREPARER: | LEHMAN BROTHERS HOLDINGS INC., AS PLAN ADMINISTRATOR |
Date: March 23, 2016 |
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Table of Contents
I. |
Schedule of Debtors | 3 | ||||||||
II. |
Notes to the Balance Sheets and Managements Discussion & Analysis | 4 | ||||||||
Note 1 Basis of Presentation | 4 | |||||||||
Note 2 Use of Estimates | 5 | |||||||||
Note 3 Cash and Short-Term Investment | 5 | |||||||||
Note 4 Cash and Short-Term Investments Pledged or Restricted | 6 | |||||||||
Note 5 Financial Instruments and Other Inventory Positions | 7 | |||||||||
Note 6 Subrogated Receivables from Affiliates and Third Parties | 10 | |||||||||
Note 7 Receivables from Controlled Affiliates and Other Assets | 11 | |||||||||
Note 8 Investments in Affiliates | 13 | |||||||||
Note 9 Due from/to Affiliates | 14 | |||||||||
Note 10 Payables to Controlled Affiliates and Other Liabilities | 25 | |||||||||
Note 11 Taxes Payable | 26 | |||||||||
Note 12 Liabilities Subject to Compromise | 27 | |||||||||
Note 13 Legal Proceedings | 29 | |||||||||
Note 14 Currency Translation | 33 | |||||||||
Note 15 Financial Systems and Control Environment | 33 | |||||||||
III. |
Balance Sheets | 34 | ||||||||
IV. |
Accompanying Schedules | 37 |
QUESTIONS
The Company has established an email address to receive questions from readers regarding this presentation and its other financial disclosures. The Company plans to review questions received, and for those subjects which the Company determines a response would not (i) violate a confidentiality provision, (ii) place the Company in a competitive or negotiation disadvantage, or (iii) be unduly burdensome relative to the value of information requested, the Company shall endeavor to post a response (maintaining the anonymity of the originators of the questions). The Company assumes no obligation to respond to email inquiries.
Please email questions, with document references as relevant, to:
QUESTIONS@lehmanholdings.com
The Companys previously posted responses can be found on the Epiq website maintained for the Company:
www.lehman-docket.com under the Key Documents tab and the Responses to Questions Submitted category
Page 2
Quarterly Financial Report as of December 31, 2015 (Unaudited)
I. Schedule of Debtors
The twenty three entities listed below (the Debtors) filed for bankruptcy in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) on the dates indicated below. On December 6, 2011, the Bankruptcy Court confirmed the Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. and its Affiliated Debtors (the Plan). On March 6, 2012, the Effective Date (as defined in the Plan) occurred. As of the date hereof, the following Debtors chapter 11 cases remain open:
Case No. | Date Filed | |||||||
Lehman Brothers Holdings Inc. (LBHI) |
08-13555 | 9/15/2008 | ||||||
Lehman Brothers Commodity Services Inc. (LBCS) |
08-13885 | 10/3/2008 | ||||||
Lehman Brothers Special Financing Inc. (LBSF) |
08-13888 | 10/3/2008 | ||||||
Lehman Brothers OTC Derivatives Inc. (LOTC) |
08-13893 | 10/3/2008 | ||||||
Lehman Brothers Derivative Products Inc. (LBDP) |
08-13899 | 10/5/2008 | ||||||
Lehman Commercial Paper Inc. (LCPI) |
08-13900 | 10/5/2008 | ||||||
Lehman Brothers Commercial Corporation (LBCC) |
08-13901 | 10/5/2008 | ||||||
Lehman Brothers Financial Products Inc.(LBFP) |
08-13902 | 10/5/2008 | ||||||
Lehman Scottish Finance L.P. |
08-13904 | 10/5/2008 | ||||||
East Dover Limited |
08-13908 | 10/5/2008 | ||||||
Luxembourg Residential Properties Loan Finance S.a.r.l (Lux Resi) |
09-10108 | 1/7/2009 | ||||||
BNC Mortgage LLC |
09-10137 | 1/9/2009 | ||||||
LB Rose Ranch LLC |
09-10560 | 2/9/2009 | ||||||
Structured Asset Securities Corporation |
09-10558 | 2/9/2009 | ||||||
Merit LLC (Merit) |
09-17331 | 12/14/2009 |
The following Debtors chapter 11 cases were closed on January 28, 2016, pursuant to a final decree entered by the Bankruptcy Court (Docket No. 51920):
Case No. | Date Filed | Date Closed | ||||||||||
LB 745 LLC |
08-13600 | 9/16/2008 | 1/28/2016 | |||||||||
PAMI Statler Arms LLC |
08-13664 | 9/23/2008 | 1/28/2016 | |||||||||
CES Aviation LLC |
08-13905 | 10/5/2008 | 1/28/2016 | |||||||||
CES Aviation V LLC |
08-13906 | 10/5/2008 | 1/28/2016 | |||||||||
CES Aviation IX LLC |
08-13907 | 10/5/2008 | 1/28/2016 | |||||||||
LB 2080 Kalakaua Owners LLC |
09-12516 | 4/23/2009 | 1/28/2016 | |||||||||
LB Somerset LLC |
09-17503 | 12/22/2009 | 1/28/2016 | |||||||||
LB Preferred Somerset LLC |
09-17505 | 12/22/2009 | 1/28/2016 |
Page 3
Quarterly Financial Report as of December 31, 2015 (Unaudited)
II. Notes to the Balance Sheets and Managements Discussion & Analysis
Page 4
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 5
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 4 Cash and Short-Term Investments Pledged or Restricted
The following table summarizes the components of restricted cash as of December 31, 2015:
Debtor- Controlled Entities |
Total and Controlled Entities |
|||||||||||||||||||||||||||
Debtors | ||||||||||||||||||||||||||||
($ in millions) | LBHI | LBSF | LCPI | Other | Total | |||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||||||||
Disputed unsecured claims (1) |
$ | 1,167 | $ | 1,006 | $ | 16 | $ | 291 | $ | 2,480 | $ | | $ | 2,480 | ||||||||||||||
Tax claims (2) |
0 | 25 | | 4 | 29 | | 29 | |||||||||||||||||||||
Distributions on Allowed Claims (not remitted) (3) |
90 | 0 | 0 | 0 | 91 | | 91 | |||||||||||||||||||||
Secured, Admin, Priority Claims and Other |
58 | 12 | 8 | 12 | 91 | | 91 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Subtotal, Claims Reserves |
1,315 | 1,044 | 25 | 307 | 2,691 | | 2,691 | |||||||||||||||||||||
Cash pledged to JPMorgan (CDA) (4) |
76 | | | | 76 | | 76 | |||||||||||||||||||||
Citigroup and HSBC (5) |
2,034 | | | | 2,034 | | 2,034 | |||||||||||||||||||||
Other (6) |
178 | 1 | 0 | 25 | 204 | 75 | 279 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total |
$ | 3,604 | $ | 1,044 | $ | 25 | $ | 332 | $ | 5,005 | $ | 75 | $ | 5,080 | ||||||||||||||
|
|
|
|
|
|
Totals may not foot due to rounding.
(1) | Represents the cash reserve for the principal amount of disputed unsecured claims subsequent to the eighth Plan distribution on October 1, 2015. Amounts of claim reserves at LBSF and LBCC exclude amounts invested in loans to LBHI in the amount of $859 million and $125 million, respectively (refer to Note 7 Receivables from Controlled Affiliates and Other Assets). |
(2) | The $29 million reserved at LBSF and LBCC represents the cash reserve for non-income tax issues. |
(3) | Includes (i) $73 million related to the Office of Foreign Asset Control (OFAC) and (ii) $18 million related to other open items. |
(4) | Represents cash deposited into accounts by LBHI and pledged to JP Morgan Chase Bank, N.A. (including its affiliates, JPM) pursuant to paragraph 6(b) of the Collateral Disposition Agreement (CDA) with JPM, effective March 31, 2010. The release of this cash is pending resolution of the Settlement, which is defined and discussed in Note 6 Subrogated Receivables from Affiliates and Third Parties and in Note 13 Legal Proceedings. |
(5) | Represents cash deposited prior to the Commencement Date by the Company in connection with certain requests and/or documents executed by the Company and Citigroup Inc. (Citigroup) ($2,007 million) and HSBC Bank PLC (HSBC) ($26 million). The Company has recorded reserves against this cash in Secured Claims Payable to Third Parties, because these institutions have asserted claims. The Company is in discussions with HSBC and commenced litigation against Citigroup regarding these deposits. |
(6) | Includes: (i) $89 million related to various pre-petition balances on administrative hold by certain financial institutions, (ii) $55 million related to misdirected wires and other cash received by LBHI for the benefit of third parties and Non-Controlled Affiliates (reported as a payable), and (iii) $135 million of various miscellaneous items. |
Page 6
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions
Financial instruments and other inventory positions are reported at estimated recovery values, which are determined by utilizing market prices, certain assumptions, estimates and/or pricing models to estimate future undiscounted cash flows.
The table below presents recovery values as of December 31, 2015 by asset portfolio, and the changes in recovery values since the previously filed Quarterly Financial Report as of October 1, 2015:
(Activity 10/02/1512/31/15) | ||||||||||||||||||||
$ in millions |
Inventory as of October 1, 2015 |
Transfers and Reclassifications |
Recovery Value Change (1) |
Cash Activities (2) | Inventory as of December 31, 2015 |
|||||||||||||||
Commercial Real Estate |
||||||||||||||||||||
Debtors: |
||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 61 | $ | | $ | (0 | ) | $ | (25 | ) | $ | 36 | ||||||||
Lehman Commercial Paper Inc. |
225 | | (11 | ) | (5 | ) | 209 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Debtors |
287 | | (11 | ) | (30 | ) | 245 | |||||||||||||
Debtor-Controlled |
404 | | 2 | (21 | ) | 385 | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
Total Commercial Real Estate |
690 | | (9 | ) | (52 | ) | 630 | |||||||||||||
|
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|
|
|||||||||||
Loans and Residential Real Estate |
||||||||||||||||||||
Debtors: |
||||||||||||||||||||
Lehman Brothers Holdings Inc. |
67 | | 12 | 1 | 79 | |||||||||||||||
Lehman Commercial Paper Inc. |
74 | | 7 | (1 | ) | 80 | ||||||||||||||
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|
|
|
|
|
|
|
|||||||||||
Subtotal Debtors |
140 | | 19 | (0 | ) | 159 | ||||||||||||||
Debtor-Controlled |
43 | | 0 | (1 | ) | 41 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Loans and Residential Real Estate |
183 | | 19 | (1 | ) | 200 | ||||||||||||||
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|
|
|
|||||||||||
Private Equity / Principal Investments |
||||||||||||||||||||
Debtors: |
||||||||||||||||||||
Lehman Brothers Holdings Inc. |
1 | | (0 | ) | (0 | ) | 0 | |||||||||||||
Lehman Commercial Paper Inc. |
3 | | 0 | (0 | ) | 3 | ||||||||||||||
|
|
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|
|
|
|
|
|
|
|||||||||||
Subtotal Debtors |
4 | | (0 | ) | (0 | ) | 3 | |||||||||||||
Debtor-Controlled |
1,387 | | (26 | ) | (108 | ) | 1,253 | |||||||||||||
|
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|
|
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|
|
|||||||||||
Total Private Equity / Principal Investments |
1,391 | | (27 | ) | (108 | ) | 1,257 | |||||||||||||
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|
|||||||||||
Derivative Receivables and Related Assets |
||||||||||||||||||||
Debtors: |
||||||||||||||||||||
Lehman Brothers Special Financing Inc. |
154 | (4 | ) | 47 | (37 | ) | 160 | |||||||||||||
Lehman Brothers Commodity Services Inc. |
0 | | 2 | (2 | ) | 0 | ||||||||||||||
Lehman Brothers Commercial Corp. |
4 | | (4 | ) | | | ||||||||||||||
Other Debtors |
27 | | 22 | (43 | ) | 6 | ||||||||||||||
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|
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|
|||||||||||
Subtotal Debtors |
185 | (4 | ) | 67 | (82 | ) | 166 | |||||||||||||
Debtor-Controlled |
1 | | 0 | | 1 | |||||||||||||||
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|||||||||||
Total Derivative Receivables and Related Assets |
186 | (4 | ) | 67 | (82 | ) | 167 | |||||||||||||
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|
|||||||||||
Totals |
$ | 2,450 | $ | (4 | ) | $ | 50 | $ | (243 | ) | $ | 2,254 | ||||||||
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(1) | Represents adjustments to recovery values based on changes in market prices, assumptions and/or estimates which, in the Companys judgment, impact the Companys recoverable value on the underlying assets. |
(2) | Cash activities are presented net of disbursements. Amounts may differ from previously filed Schedules of Cash Receipts and Disbursements mainly due to timing and classification differences. Cash activities related to Derivative Receivables and Related Assets include collections on open and terminated trades, net of hedging activities. |
Page 7
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions (continued)
Page 8
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions (continued)
Page 9
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 6 Subrogated Receivables from Affiliates and Third Parties
JPMorgan Collateral Disposition Agreement
The Company and JPM entered into a CDA effective March 31, 2010, which provided for, among other items:
| Provisional settlement of JPMs claims against the Debtors; and |
| LBHIs subrogation to JPMs alleged secured claims against LBI and certain other Debtor-Controlled Entities and Non-Controlled Affiliates. |
In accordance with the LBI Settlement Agreement, which was effective June 2013 between LBHI and certain other Debtors and Debtor-Controlled Entities and LBI, LBI waived any rights to any proceeds from the collateral held by JPM that was transferred to LBHI.
JPM Settlement Agreement
On January 25, 2016, LBHI and certain Controlled Affiliates and JPM entered into a Settlement Agreement (the Settlement) which provides for, among other things, the net cash payment by JPM to LBHI, LBSF and LBCS totaling $1.42 billion, the release of JPMs lien on a collateral account, per the CDA, holding $76 million, and the final allowed amounts of the JPM derivatives claims (refer to Note 13 Legal Proceedings for further discussion). The following table summarizes the impact of the Settlement on the Company receivables and cash, which will be recorded in future Balance Sheets:
$ in millions |
Subrogated Receivables @ 12/31/15 |
Cash Receipt from JPM |
Adjustments | Subrogated Receivables Post-Settlement (4) |
||||||||||||
LBHI |
||||||||||||||||
Lehman Brothers Special Finance |
$ | 1,636 | $ | (1,061 | ) | $ | 60 | $ | 636 | |||||||
Lehman Brothers Commercial Corp |
125 | (104 | ) | | 20 | |||||||||||
Lehman Brothers Finance S.A. |
39 | | | 39 | ||||||||||||
Lehman Brothers Holdings Japan Inc |
59 | | | 59 | ||||||||||||
Lehman Brothers Treasury Co. B.V. |
14 | | | 14 | ||||||||||||
Real Estate Private Equity Inc. |
19 | | | 19 | ||||||||||||
Lehman Brothers Commodity Services Inc. |
| | 7 | 7 | ||||||||||||
Other (2) |
97 | (25 | ) | (65 | ) | 8 | ||||||||||
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|
|||||||||
1,988 | (1,190 | ) | 3 | 802 | ||||||||||||
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LBCS (1)(3) |
||||||||||||||||
Derivative Claims |
| (30 | ) | 30 | | |||||||||||
LBSF (1) |
||||||||||||||||
Derivative Claims |
| (201 | ) | 201 | | |||||||||||
|
|
|||||||||||||||
Total Cash Collected |
$ | (1,420 | ) | |||||||||||||
|
|
(1) | The Settlement resulted in a reduction of the Liabilities Subject to Compromise at LBSF, LBCS and LBCC of approximately $264 million. |
(2) | Includes adjustments related to asserted claims by JPM that were previously provisionally satisfied by LBHI pursuant to the CDA. |
(3) | LBCS will have an allowed Class 4A claim for $29.7 million against LBSF. |
(4) | Subrogated Receivables Post-Settlement includes $776 million of allowed claims (of which $661 million is newly allowed) and $26 million of claims in dispute. |
Page 10
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 7 Receivables from Debtors and Debtor-Controlled Entities and Other Assets
Receivables from Debtors and Debtor-Controlled Entities and Other Assets includes: (i) $3.1 billion related to certain post-petition activities between and among Debtors and Debtor-Controlled Entities, with the corresponding liabilities reflected in Payables to Debtors and Debtor-Controlled Entities and Other Liabilities, and (ii) $460 million of other assets.
The following table summarizes the main components of Receivables from Debtors and Debtor-Controlled Entities and Other Assets as of December 31, 2015:
Total Debtors | ||||||||||||||||||||||||||||
Debtors | Debtor- | and Debtor- | ||||||||||||||||||||||||||
Other | Controlled | Controlled | ||||||||||||||||||||||||||
$ in millions | LBHI | LCPI | LBSF | Debtors | Total | Entities | Entities | |||||||||||||||||||||
Encumbered Financial Inventory (1) |
$ | | $ | 300 | $ | | $ | | $ | 300 | $ | | $ | 300 | ||||||||||||||
Secured Notes (2) |
| | 859 | 1,011 | 1,870 | 75 | 1,945 | |||||||||||||||||||||
Fundings and other activites (3) |
244 | 22 | 0 | 7 | 274 | 586 | 859 | |||||||||||||||||||||
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|
|||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities |
244 | 322 | 859 | 1,019 | 2,444 | 661 | 3,104 | |||||||||||||||||||||
Receivable related to Fenway (4) |
92 | | | | 92 | | 92 | |||||||||||||||||||||
Affiliate Claims (5) |
144 | 1 | 27 | 1 | 173 | 0 | 173 | |||||||||||||||||||||
Collateral Posted on Hedges |
151 | 4 | | | 155 | | 155 | |||||||||||||||||||||
Other |
28 | (0 | ) | (0 | ) | 0 | 28 | 11 | 39 | |||||||||||||||||||
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|||||||||||||||||||||||
Total Other Assets |
415 | 5 | 27 | 1 | 448 | 12 | 460 | |||||||||||||||||||||
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|||||||||||||||||||||||
Total Receivables from Debtors and Debtor-Controlled Entities and Other Assets |
$ | 659 | $ | 327 | $ | 885 | $ | 1,020 | $ | 2,892 | $ | 672 | $ | 3,564 | ||||||||||||||
|
|
|
|
|
|
(1) | Represents Private Equity/Principal Investment assets encumbered by LB I Group Inc. for the benefit of LCPI. |
(2) | Includes (i) loans from LOTC of $571 million, LBCC of $115 million and a Debtor-Controlled Entity of $75 million to LBHI, secured by LBHI assets; (ii) a loan from LBFP to LCPI of $200 million, secured by LCPI assets; and (iii) investments of $859 million and $125 million of LBSFs and LBCCs cash reserves for disputed claims, respectively, in secured notes issued by LBHI. |
(3) | Includes (i) $226 million related to promissory notes issued by LBHI to certain Debtor-Controlled Entities, of which LBHI is the ultimate economic beneficiary; (ii) $195 million primarily related to fundings (e.g. capital calls) by LBHI and cost allocations; (iii) $192 million of cash collections at LCPI for the benefit of certain Debtor-Controlled Entities, of which LCPI is the ultimate economic beneficiary; and (iv) $49 million at LBHI related to the Modified Settlement with respect to the Variable Funding Trust [Docket No. 19370]. |
(4) | Represents unsecured claims asserted by LBHI against LCPI based on the Fenway transactions, as disclosed in Section 6.5(h) of the Plan, net of $138 million of payments received by LBHI as a result of Plan distributions. |
(5) | Includes (i) $91 million of affiliate claims acquired through settlements with third parties valued at estimated recoveries, net of distributions; and (ii) $82 million from a total return swap related to future distributions on LBI claims held by LBHI; LBHI recorded an offsetting payable of $82 million in Payables to Controlled Affiliates and other liabilities. |
Page 11
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 7 Receivables from Debtors and Debtor-Controlled Entities and Other Assets (continued)
Page 12
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 8 Investments in Affiliates
Page 13
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates
Page 14
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(a) Intercompany Balances Among Debtors and Debtor-Controlled Entities
The table below presents the Due from/to Debtors and Debtor-Controlled Entities balances as of December 31, 2015 and the related activity since the previously filed Quarterly Financial Report as of October 1, 2015:
Activity 10/2/15 - 12/31/15 | ||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||
October 1, | Cash | Claim | Debt | December 31, | ||||||||||||||||||||
$ in millions | 2015 | Cash Receipts | Distributions | Assignments | Forgiveness (2) | 2015 | ||||||||||||||||||
Due From Controlled |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 28,943 | $ | (3 | ) | $ | | $ | | $ | (53 | ) | $ | 28,887 | ||||||||||
Lehman Commercial Paper Inc. |
5,022 | (9 | ) | | | (0 | ) | 5,013 | ||||||||||||||||
Lehman Brothers Special Financing Inc. |
508 | | | | | 508 | ||||||||||||||||||
Other Debtors |
708 | | | | (0 | ) | 708 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
35,181 | (12 | ) | | | (53 | ) | 35,116 | ||||||||||||||||
Debtor-Controlled |
4,398 | | | (53 | ) | (1 | ) | 4,344 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 39,579 | $ | (12 | ) | $ | | $ | (53 | ) | $ | (54 | ) | $ | 39,460 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Due To Controlled (1) |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 4,615 | $ | | $ | | $ | (53 | ) | $ | (1 | ) | $ | 4,561 | ||||||||||
Lehman Commercial Paper Inc. |
4,140 | | | | | 4,140 | ||||||||||||||||||
Lehman Brothers Special Financing Inc. |
10,346 | | | | | 10,346 | ||||||||||||||||||
Other Debtors |
892 | | | | (0 | ) | 892 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
19,994 | | | (53 | ) | (1 | ) | 19,940 | ||||||||||||||||
Debtor-Controlled |
12,616 | | (12 | ) | | (53 | ) | 12,551 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 32,610 | $ | | $ | (12 | ) | $ | (53 | ) | $ | (54 | ) | $ | 32,491 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Due to Debtors and Debtor-Controlled Entities balances are reflected in Liabilities Subject to Compromise on the December 31, 2015 Balance Sheets. |
(2) | Includes debt forgiveness resulting from dissolution of Debtor-Controlled Entities. |
Page 15
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(a) Intercompany Balances Among Debtors and Debtor-Controlled Entities (continued)
The following table presents a summary of Due from/to Debtors and Debtor-Controlled Entities for Debtors as of December 31, 2015:
LBHI | LBSF | LCPI | Other Debtors | Total Debtors | ||||||||||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||||||||
Lehman Brothers Holdings Inc |
$ | | $ | | $ | 188 | $ | (9,965 | ) | $ | 34 | $ | (3,695 | ) | $ | 201 | $ | (362 | ) | $ | 422 | $ | (14,022 | ) | ||||||||||||||||
LB Special Financing Inc |
9,965 | (188 | ) | | | 73 | (255 | ) | 278 | (25 | ) | 10,315 | (468 | ) | ||||||||||||||||||||||||||
Lehman Commercial Paper Inc |
3,695 | (34 | ) | 255 | (73 | ) | | | 162 | (359 | ) | 4,112 | (465 | ) | ||||||||||||||||||||||||||
LB Commodity Services Inc |
100 | (41 | ) | | (260 | ) | | (1 | ) | | (0 | ) | 100 | (302 | ) | |||||||||||||||||||||||||
LB Commercial Corporation |
30 | (15 | ) | 25 | | 74 | | 0 | | 129 | (15 | ) | ||||||||||||||||||||||||||||
Structured Asset Securities Corp |
223 | | 0 | | | (154 | ) | | | 223 | (154 | ) | ||||||||||||||||||||||||||||
Merit, LLC |
| (15 | ) | | (13 | ) | 198 | | | | 198 | (28 | ) | |||||||||||||||||||||||||||
LB OTC Derivatives Inc |
0 | (0 | ) | 0 | | | | | | 0 | (0 | ) | ||||||||||||||||||||||||||||
Other Debtors |
9 | (130 | ) | 0 | (5 | ) | 86 | (6 | ) | 0 | (0 | ) | 95 | (141 | ) | |||||||||||||||||||||||||
RACERS Claims (1) |
959 | | | | | | | | 959 | | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total Debtors |
$ | 14,981 | $ | (422 | ) | $ | 468 | $ | (10,315 | ) | $ | 465 | $ | (4,112 | ) | $ | 641 | $ | (746 | ) | $ | 16,555 | $ | (15,596 | ) | |||||||||||||||
Lehman Ali Inc: |
||||||||||||||||||||||||||||||||||||||||
Lehman Ali Inc (PCO) |
| (2,542 | ) | | (0 | ) | 2,593 | | 0 | | 2,593 | (2,543 | ) | |||||||||||||||||||||||||||
LB Pass-Through Securities Inc |
176 | | | | 93 | | | | 269 | | ||||||||||||||||||||||||||||||
LCPI Properties Inc |
0 | (513 | ) | | | | (0 | ) | | (0 | ) | 0 | (513 | ) | ||||||||||||||||||||||||||
LB I Group Inc: |
||||||||||||||||||||||||||||||||||||||||
LB I Group Inc (PCO) |
2,162 | (29 | ) | 9 | | 61 | (1 | ) | (0 | ) | | 2,232 | (30 | ) | ||||||||||||||||||||||||||
LB Offshore Partners Ltd |
387 | | | (0 | ) | 1 | | (0 | ) | | 388 | (0 | ) | |||||||||||||||||||||||||||
DL Mortgage Corp |
| (191 | ) | 0 | | 772 | | | | 772 | (191 | ) | ||||||||||||||||||||||||||||
314 Commonwealth Ave Inc: |
||||||||||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc (PCO) |
873 | (90 | ) | | (2 | ) | | | | (86 | ) | 873 | (178 | ) | ||||||||||||||||||||||||||
LB U.K. Holdings (Delaware) Inc: |
||||||||||||||||||||||||||||||||||||||||
LB U.K. Holdings (Delaware) Inc (PCO) |
191 | (37 | ) | | | | | | | 191 | (37 | ) | ||||||||||||||||||||||||||||
Other: |
||||||||||||||||||||||||||||||||||||||||
Pami Ali LLC |
1,815 | (66 | ) | 1 | | 847 | (2 | ) | | (48 | ) | 2,662 | (117 | ) | ||||||||||||||||||||||||||
Luxembourg Finance Sarl |
844 | | 28 | | | | 67 | | 939 | | ||||||||||||||||||||||||||||||
Real Estate Private Equity Inc |
600 | | | | | | | | 600 | | ||||||||||||||||||||||||||||||
Repe LBREP II Holdings, L.P. |
220 | | | | | | | | 220 | | ||||||||||||||||||||||||||||||
LBHK Funding (Cayman) No.4 |
49 | | | | | | | | 49 | | ||||||||||||||||||||||||||||||
Lehman Brothers Global Services Inc. |
69 | | | (0 | ) | | (0 | ) | | (0 | ) | 69 | (0 | ) | ||||||||||||||||||||||||||
LB Private Equity Advisers LLC |
| (89 | ) | | (0 | ) | | | | | | (90 | ) | |||||||||||||||||||||||||||
Lehman Investment Inc |
| (99 | ) | | (28 | ) | 148 | | | | 148 | (127 | ) | |||||||||||||||||||||||||||
Other |
508 | (482 | ) | 2 | (1 | ) | 34 | (25 | ) | (0 | ) | (11 | ) | 544 | (518 | ) | ||||||||||||||||||||||||
LB Re Financing No.1 Limited |
6,010 | | | | | | | | 6,010 | | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total Debtor-Controlled Entities |
$ | 13,906 | $ | (4,138 | ) | $ | 40 | $ | (31 | ) | $ | 4,548 | $ | (28 | ) | $ | 67 | $ | (146 | ) | $ | 18,561 | $ | (4,344 | ) | |||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
$ | 28,887 | $ | (4,561 | ) | $ | 508 | $ | (10,346 | ) | $ | 5,013 | $ | (4,140 | ) | $ | 708 | $ | (892 | ) | $ | 35,116 | $ | (19,940 | ) | ||||||||||||||||
|
|
PCO parent company only
(1) | Refer to Section IV.I.b of the Disclosure Statement for further information on the RACERS Claims. |
Page 16
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(a) Intercompany Balances Among Debtors and Debtor-Controlled Entities (continued)
The following table presents a summary of Due from/to Affiliates balances for Debtor-Controlled Entities as of December 31, 2015:
Lehman ALI Inc. | LB I Group Inc. | 314 Commonwealth Ave. Inc. |
LB UK Holdings Delaware Inc. |
Other Debtor- Controlled Entities |
||||||||||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 3,056 | $ | (176 | ) | $ | 220 | $ | (2,550 | ) | $ | 90 | $ | (873 | ) | $ | 37 | $ | (191 | ) | $ | 737 | $ | (4,105 | ) | |||||||||||||||
Lehman Commercial Paper Inc. |
| (2,687 | ) | 1 | (833 | ) | | | | | 27 | (1,028 | ) | |||||||||||||||||||||||||||
Lehman Brothers Special Financing Inc. |
| | | (9 | ) | 2 | | | | 29 | (30 | ) | ||||||||||||||||||||||||||||
Luxembourg Residential Properties Loan Fin S.a.r.l. |
| | | | 86 | | | | | | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Debtors |
$ | 3,056 | $ | (2,862 | ) | $ | 220 | $ | (3,393 | ) | $ | 178 | $ | (873 | ) | $ | 37 | $ | (191 | ) | $ | 793 | $ | (5,164 | ) | |||||||||||||||
Debtor-Controlled: |
||||||||||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc |
$ | 50 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||||
Lehman Ali Inc (1) |
| | | | | (50 | ) | | | 234 | | |||||||||||||||||||||||||||||
Repe LBREP III LLC (1) |
| | | | | | | | 123 | | ||||||||||||||||||||||||||||||
Real Estate Private Equity Inc (1) |
| | | | | | | | 222 | | ||||||||||||||||||||||||||||||
LB I Group Inc. |
| | | | | | | | | (303 | ) | |||||||||||||||||||||||||||||
LCPI Properties Inc. |
| | | | | | | | | (170 | ) | |||||||||||||||||||||||||||||
Pami ALI LLC |
170 | (234 | ) | 303 | | | | | | | (345 | ) | ||||||||||||||||||||||||||||
Other |
56 | (0 | ) | 29 | (7 | ) | 0 | (2 | ) | 27 | (22 | ) | 73 | (161 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Debtor-Controlled Entities |
$ | 276 | $ | (234 | ) | $ | 332 | $ | (7 | ) | $ | 0 | $ | (52 | ) | $ | 27 | $ | (22 | ) | $ | 653 | $ | (979 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 3,331 | $ | (3,096 | ) | $ | 552 | $ | (3,400 | ) | $ | 178 | $ | (925 | ) | $ | 64 | $ | (213 | ) | $ | 1,446 | $ | (6,143 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Non-Controlled Affiliates: (2) |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Intermediate 2 Ltd |
$ | | $ | | $ | | $ | | $ | | $ | | $ | 77 | $ | | $ | 749 | $ | | ||||||||||||||||||||
Lehman Brothers Holdings PLC |
| | | | | | 173 | (53 | ) | 2 | | |||||||||||||||||||||||||||||
Lehman Brothers Asia Holdings Limited |
| | | (30 | ) | | | 12 | (23 | ) | 0 | (353 | ) | |||||||||||||||||||||||||||
LB UK RE Holdings Limited |
| | | | 7 | | | | | | ||||||||||||||||||||||||||||||
Other |
0 | (1 | ) | 1 | (2 | ) | (0 | ) | | 112 | (3 | ) | 59 | (52 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 0 | $ | (1 | ) | $ | 1 | $ | (32 | ) | $ | 7 | $ | | $ | 374 | $ | (79 | ) | $ | 811 | $ | (405 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Due from balances at Other Debtor-Controlled Entities are related to receivables recorded by Pami ALI LLC. |
(2) | Certain Due from balances are recorded in the local currency of the respective Non-Controlled Affiliates and as a result, balances may fluctuate as a result of changes in foreign exchange rates. Due from/to Affiliates balances include both settled and unresolved balances with Non-Controlled Affiliates. |
Page 17
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates
The table below presents the Due from/to Non-Controlled Affiliates balances as of December 31, 2015 and the related activity since the previously filed Quarterly Financial Report as of October 1, 2015:
Activity 10/2/1512/31/15 | ||||||||||||||||||||
$ in millions | As of October 1, 2015 |
Cash Receipts |
Claim Assignments (1) |
Other (2) | As of December 31, 2015 |
|||||||||||||||
Due From Non-Controlled |
||||||||||||||||||||
Debtors: |
||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 19,945 | $ | (10 | ) | $ | 374 | $ | (367 | ) | $ | 19,943 | ||||||||
Lehman Commercial Paper Inc. |
138 | | | (1 | ) | 137 | ||||||||||||||
Lehman Brothers Special Financing Inc. |
1,302 | (3 | ) | | (30 | ) | 1,270 | |||||||||||||
Other Debtors |
455 | (6 | ) | (77 | ) | (1 | ) | 372 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Debtors |
21,841 | (18 | ) | 297 | (399 | ) | 21,722 | |||||||||||||
Debtor-Controlled |
1,504 | (3 | ) | (299 | ) | (10 | ) | 1,192 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 23,345 | $ | (21 | ) | $ | (1 | ) | $ | (409 | ) | $ | 22,914 | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Due To Non-Controlled (3) |
||||||||||||||||||||
Debtors: |
||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 40,230 | $ | | $ | | $ | (43 | ) | $ | 40,187 | |||||||||
Lehman Commercial Paper Inc. |
673 | | | | 673 | |||||||||||||||
Lehman Brothers Special Financing Inc. |
1,005 | | | (27 | ) | 979 | ||||||||||||||
Other Debtors |
99 | | | (0 | ) | 99 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Debtors |
42,007 | | | (70 | ) | 41,938 | ||||||||||||||
Debtor-Controlled |
567 | | | (50 | ) | 517 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 42,574 | $ | | $ | | $ | (119 | ) | $ | 42,454 | |||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Claim assignments primarily relate to the purchase by LBHI of $356 million of Lehman Brothers Asia Holdings Limited (LBAH) claims, net of distributions, from Other Debtors and Debtor-Controlled Entities. |
(2) | Due From Non-Controlled balances are recorded in the local currency of the Non-Controlled Affiliate and as a result, balances fluctuate due to changes in foreign exchange rates. Other includes the impact from foreign exchange rates of approximately $346 million. |
(3) | Due to Non-Controlled balances with Non-Controlled Affiliates are reflected in Liabilities Subject to Compromise herein. |
Page 18
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
The following table presents a summary of Due from/to Non-Controlled Affiliates for Debtors as of December 31, 2015:
LBHI | LBSF | LCPI | Other Debtors | Total Debtors | ||||||||||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Treasury Co B.V. (1) |
$ | 2,284 | $ | (24,238 | ) | $ | 713 | $ | | $ | | $ | | $ | 111 | $ | | $ | 3,107 | $ | (24,238 | ) | ||||||||||||||||||
Lehman Brothers Finance S.A. |
8,718 | (720 | ) | | | 0 | | 1 | | 8,719 | (720 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Bankhaus A.G. |
1,182 | (33 | ) | | (113 | ) | | (111 | ) | 26 | | 1,208 | (256 | ) | ||||||||||||||||||||||||||
LB UK RE Holdings Limited |
765 | | | | | | | | 765 | | ||||||||||||||||||||||||||||||
Lehman Brothers (Luxembourg) S.A. |
357 | | | | | | | | 357 | | ||||||||||||||||||||||||||||||
Thayer Properties Limited |
225 | | | | | (0 | ) | | | 225 | (0 | ) | ||||||||||||||||||||||||||||
SMF No 1 Limited |
191 | | | | | | | | 191 | | ||||||||||||||||||||||||||||||
LB (PTG) Ltd |
187 | | | | 0 | | (0 | ) | | 187 | | |||||||||||||||||||||||||||||
LB Lease & Finance No.1 Ltd |
131 | | | | | | | | 131 | | ||||||||||||||||||||||||||||||
LB (Luxembourg) Equity Finance S.A |
51 | (59 | ) | | | | | | | 51 | (59 | ) | ||||||||||||||||||||||||||||
Longmeade Limited |
12 | | | | | (60 | ) | | | 12 | (60 | ) | ||||||||||||||||||||||||||||
LB RE Financing No.2 Limited (2) |
0 | (4,765 | ) | | | | | | | 0 | (4,765 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Limited |
0 | (255 | ) | | (2 | ) | | (1 | ) | 0 | (0 | ) | 0 | (259 | ) | |||||||||||||||||||||||||
Lehman Brothers International (Europe) Inc (3) |
| (788 | ) | | (571 | ) | | | | | | (1,359 | ) | |||||||||||||||||||||||||||
LB RE Financing No.3 Limited |
| | 521 | | | | | | 521 | | ||||||||||||||||||||||||||||||
Lehman Re Limited |
| (69 | ) | | | | | | (7 | ) | | (75 | ) | |||||||||||||||||||||||||||
Wood Street Investments Ltd |
| (194 | ) | | | | | | | | (194 | ) | ||||||||||||||||||||||||||||
LB Holdings Intermediate 2 Ltd |
| (216 | ) | | | | | | | | (216 | ) | ||||||||||||||||||||||||||||
LB UK Holdings Limited |
| (432 | ) | | | | | | | | (432 | ) | ||||||||||||||||||||||||||||
Eldon Street Holdings Limited |
| (451 | ) | | | | (0 | ) | | 0 | | (451 | ) | |||||||||||||||||||||||||||
Storm Funding Ltd |
| (163 | ) | | (3 | ) | | (46 | ) | | | | (212 | ) | ||||||||||||||||||||||||||
Asia |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Asia Holdings Limited |
3,668 | (1 | ) | | | | | | (4 | ) | 3,668 | (5 | ) | |||||||||||||||||||||||||||
LB Commercial Corp. Asia Limited |
1,059 | | 8 | | | (1 | ) | 52 | (68 | ) | 1,119 | (69 | ) | |||||||||||||||||||||||||||
LB Asia Pacific (Singapore) PTE |
366 | | | | | | | | 366 | | ||||||||||||||||||||||||||||||
LB Investments PTE Ltd |
267 | | | | | | | | 267 | | ||||||||||||||||||||||||||||||
LB Asia Capital Company |
25 | (0 | ) | 29 | | 134 | | 149 | | 336 | (0 | ) | ||||||||||||||||||||||||||||
LB Securities Asia Limited |
0 | (145 | ) | | | | | | | 0 | (145 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Japan Inc. |
5 | (89 | ) | | (136 | ) | | | 16 | | 21 | (225 | ) | |||||||||||||||||||||||||||
Lehman Brothers Asia Limited |
| (133 | ) | | | | (0 | ) | | 0 | | (133 | ) | |||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||
Claims held by third parties (4) |
| (7,101 | ) | | (87 | ) | | (426 | ) | | (1 | ) | | (7,614 | ) | |||||||||||||||||||||||||
Other |
452 | (336 | ) | 0 | (67 | ) | 3 | (29 | ) | 17 | (19 | ) | 472 | (450 | ) | |||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 19,943 | $ | (40,187 | ) | $ | 1,270 | $ | (979 | ) | $ | 137 | $ | (673 | ) | $ | 372 | $ | (99 | ) | $ | 21,722 | $ | (41,938 | ) | |||||||||||||||
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|
|
|
(1) | LBT is included in the defined term Non-Controlled Affiliates, but LBHI has no direct or indirect equity interest in LBT. |
(2) | Distributions from LBHI to LB RE Financing No.2 Limited (FIN2) are subsequently remitted from FIN2 to LB RE Financing No. 1 Limited (FIN1); FIN1 then pays these monies to LBHI to satisfy its obligations. |
(3) | LBHI and other Debtors own allowed claims against LBIE in the aggregate face amounts of £200 million and £69 million, respectively. |
Page 19
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
(4) | Claims held by third parties represent claims, net of distributions, originally held by Non-Controlled Affiliates, according to their respective settlement agreements with the Company, that are currently held by third parties, including: ($ in millions) |
Orignal creditor |
LBHI | LBSF | LCPI | Total Debtors |
||||||||||||
Lehman Brothers Bankhaus A.G. |
$ | (5,206 | ) | $ | (0 | ) | $ | (234 | ) | $ | (5,441 | ) | ||||
Lehman Brothers Securities NV |
(539 | ) | (47 | ) | (11 | ) | (598 | ) | ||||||||
Storm Funding Ltd |
(558 | ) | | | (558 | ) | ||||||||||
LB Asia Capital Company |
(436 | ) | | | (436 | ) | ||||||||||
Lehman Re Limited |
(234 | ) | (17 | ) | (123 | ) | (374 | ) | ||||||||
Other |
(127 | ) | (22 | ) | (58 | ) | (207 | ) | ||||||||
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|||||||||
Total Claims held by third parties |
$ | (7,101 | ) | $ | (87 | ) | $ | (426 | ) | $ | (7,614 | ) | ||||
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The following table presents, on an aggregate basis for Debtors and Debtor-Controlled Entities, admitted claims, receivables, and collections to date from Non-Controlled Affiliates:
Admitted | Admitted and | |||||||||||||||||
Claims in | Unsettled | Collections | Net | |||||||||||||||
Local | Local | Filed Claims | To Date in | Receivables | ||||||||||||||
$ in millions |
Currency | Currency | in USD | USD (6) | in USD | |||||||||||||
Europe |
||||||||||||||||||
Lehman Brothers Finance S.A. |
CHF | 9,582 | $ | 9,629 | $ | (910 | ) | $ | 8,719 | |||||||||
Lehman Brothers Treasury Co B.V. |
USD | 4,342 | 4,342 | (1,318 | ) | 3,023 | ||||||||||||
Lehman Brothers Treasury Co B.V. (1) |
Various | | 113 | (29 | ) | 84 | ||||||||||||
Lehman Brothers Bankhaus A.G. |
EUR | 203 | 221 | (194 | ) | 27 | ||||||||||||
Lehman Brothers Bankhaus A.G. - Assigned (2) |
EUR | 8,842 | 9,601 | (8,420 | ) | 1,182 | ||||||||||||
LB UK RE Holdings Limited |
GBP | 1,188 | 1,750 | (978 | ) | 772 | ||||||||||||
Lehman Brothers (Luxembourg) S.A. |
EUR | 759 | 824 | (467 | ) | 357 | ||||||||||||
LB Holdings Intermediate 2 Ltd (3) (5) |
| | 826 | | 826 | |||||||||||||
Lehman Brothers International (Europe) Inc |
GBP | 350 | 520 | (520 | ) | | ||||||||||||
LB RE Financing No.3 Limited |
GBP | 353 | 521 | | 521 | |||||||||||||
LB Commercial Mortgage Conduit Ltd |
GBP | 240 | 354 | (279 | ) | 74 | ||||||||||||
Thayer Properties Limited |
GBP | 172 | 253 | (28 | ) | 225 | ||||||||||||
LB (PTG) Ltd |
GBP | 170 | 250 | (64 | ) | 187 | ||||||||||||
Lehman Brothers Holdings Plc (4) |
GBP | 158 | 234 | (10 | ) | 225 | ||||||||||||
SMF No 1 Limited |
EUR | 202 | 219 | (29 | ) | 191 | ||||||||||||
LB Lease & Finance No.1 Ltd |
GBP | 122 | 179 | (48 | ) | 131 | ||||||||||||
LB (Luxembourg) Equity Finance S.A |
EUR | 96 | 104 | (53 | ) | 51 | ||||||||||||
Monaco NPL (No.1) Limited |
GBP | 62 | 91 | (29 | ) | 62 | ||||||||||||
Yellow Real Estate Ltd |
USD | 89 | 89 | (89 | ) | | ||||||||||||
Longmeade Limited |
GBP | 43 | 64 | (23 | ) | 41 | ||||||||||||
Asia |
||||||||||||||||||
Lehman Brothers Asia Holdings Limited (4) |
HKD | 82,330 | 10,634 | (6,955 | ) | 3,680 | ||||||||||||
LB Asia Capital Company |
HKD | 3,279 | 423 | (87 | ) | 336 | ||||||||||||
LB Asia Pacific (Singapore) PTE (5) |
USD | 366 | 366 | | 366 | |||||||||||||
LB Commercial Corp. Asia Limited |
HKD | 18,920 | 2,441 | (1,318 | ) | 1,123 | ||||||||||||
LB Investments PTE Ltd (5) |
USD | 456 | 456 | (189 | ) | 267 | ||||||||||||
LB Securities Asia Limited |
HKD | 2,023 | 261 | (261 | ) | | ||||||||||||
Lehman Brothers Japan Inc. |
JPY | 17,249 | 143 | (121 | ) | 23 | ||||||||||||
GKI Development Inc. |
KRW | 103,363 | 88 | (77 | ) | 11 | ||||||||||||
Lehman Brothers Australia Ltd (4) |
AUD | 104 | 82 | | 82 | |||||||||||||
Sail Investor PTE Ltd |
USD | 63 | 63 | (57 | ) | 6 | ||||||||||||
Other |
527 | (203 | ) | 324 | ||||||||||||||
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Total |
$ | 45,669 | $ | (22,755 | ) | $ | 22,914 | |||||||||||
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Page 20
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
(1) | Represents claims against Lehman Brothers Treasury Co B.V. that were admitted in eight different currencies. |
(2) | Includes gross claims against Lehman Brothers Bankhaus A.G. (Bankhaus) of 8.773 billion that were assigned as a result of the Harmonizing Resolution (refer to Note 9(c) Settlement with Non-Controlled Affiliates for further information), net of 7.391 billion of distributions received by owners of the claims prior to the claims assignments to LBHI. 541 million of gross claims are in the process of being assigned to LBHI and are not reflected in the above table. |
(3) | Admitted and Unsettled Filed Claims in USD includes the unsettled historical receivable balances where the filed claims have not yet been admitted. |
(4) | Amounts in Admitted Claims in Local Currency represent the allowed claims with Non-Controlled Affiliates. |
(5) | Included are allowed claims that are deemed subordinated against LB Asia Pacific (Singapore) PTE of $366 million and LB Investments PTE Ltd of $6 million. A filed subordinated claim by LB Holdings Scottish LP 3 of $6.139 billion against LB Holdings Intermediates 2 Ltd is fully reserved in the Balance Sheets. |
(6) | Collections to Date in USD include distributions received on the claims prior to the assignments of the claims to LBHI and Debtor-Controlled Entities. |
(7) | Other claims against Lehman Brothers Finance S.A., Lehman Brothers Bankhaus A.G., Lehman Brothers Treasury Co B.V. and Lehman Brothers International (Europe) Inc., acquired through settlements with third parties are included in Affiliate Claims receivables in the Balance Sheets (refer to Note 7 Receivables from Controlled Affiliates and Other Assets for additional information). |
Page 21
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(c) Settlements with Non-Controlled Affiliates
Page 22
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(c) Settlements with Non-Controlled Affiliates (continued)
Page 23
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(c) Settlements with Non-Controlled Affiliates (continued)
Page 24
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 10 Payables to Debtors and Debtor-Controlled Entities and Other Liabilities
Payables to Debtors and Debtor-Controlled Entities and Other Liabilities includes: (i) $3.1 billion related to certain post-petition activities between and among Debtors and Debtor-Controlled Entities, with the corresponding assets reflected in Receivables from Debtors and Debtor-Controlled Entities and Other Assets and (ii) $385 million of other liabilities.
The following table summarizes the main components of Payables to Debtors and Debtor-Controlled Entities and Other Liabilities as of December 31, 2015:
Total Debtors | ||||||||||||||||||||||||||||
Debtors | Debtor- | and Debtor- | ||||||||||||||||||||||||||
Other | Controlled | Controlled | ||||||||||||||||||||||||||
$ in millions | LBHI | LCPI | LBSF | Debtors | Total | Entities | Entities | |||||||||||||||||||||
Encumbered Financial Inventory (1) |
$ | | $ | | $ | | $ | | $ | | $ | 300 | $ | 300 | ||||||||||||||
Secured Notes (2) |
1,745 | 200 | | 1,945 | | 1,945 | ||||||||||||||||||||||
Fundings and other activites (3) |
387 | 262 | 11 | 14 | 673 | 186 | 859 | |||||||||||||||||||||
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Payables to Debtors and Debtor-Controlled Entities |
2,132 | 462 | 11 | 14 | 2,618 | 486 | 3,104 | |||||||||||||||||||||
Distributions on Allowed Claims (not remitted) |
90 | 0 | 0 | 0 | 91 | | 91 | |||||||||||||||||||||
Misdirected wires |
55 | | | | 55 | | 55 | |||||||||||||||||||||
Other |
108 | 13 | (0 | ) | 0 | 121 | 119 | 240 | ||||||||||||||||||||
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Total Other Liabilities |
253 | 13 | 0 | 0 | 267 | 119 | 385 | |||||||||||||||||||||
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|||||||||||||||||||||||
Total Payables to Controlled Affiliates and other liabilities |
$ | 2,385 | $ | 475 | $ | 11 | $ | 14 | $ | 2,885 | $ | 605 | $ | 3,490 | ||||||||||||||
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Refer to Note 7 - Receivables from Debtors and Debtor-Controlled Entities and Other Assets for footnote explanations.
Page 25
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 11 Taxes Payable
Page 26
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Note 12 Liabilities Subject to Compromise
The table below presents the Companys estimates of claim values as of December 31, 2015 by claim category, and the changes in estimates since the previously filed Quarterly Financial Report as of October 1, 2015:
($ billions) | Period Ending December 31, 2015 | December 31, 2015 Claims Balance | ||||||||||||||||||||||||||||||
October 1, | Change in | December 31, | ||||||||||||||||||||||||||||||
2015 Claims | Estimated | 2015 Claims | Other | |||||||||||||||||||||||||||||
Claim Category |
Balance | Allowed Claims | Active Claims | Balance | LBHI | LCPI | LBSF | Debtors | ||||||||||||||||||||||||
Direct Claims: |
||||||||||||||||||||||||||||||||
Debt |
$ | 99.2 | $ | | $ | | $ | 99.2 | $ | 98.5 | $ | | $ | | $ | 0.7 | ||||||||||||||||
Derivatives |
25.0 | 0.0 | (0.0 | ) | 25.0 | 0.0 | 0.0 | 22.5 | 2.5 | |||||||||||||||||||||||
Other |
13.6 | | (0.0 | ) | 13.6 | 6.3 | 6.7 | 0.1 | 0.5 | |||||||||||||||||||||||
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Total Direct Claims |
137.9 | 0.0 | (0.0 | ) | 137.9 | 104.8 | 6.8 | 22.5 | 3.7 | |||||||||||||||||||||||
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|||||||||||||||||
Affiliate Claims Direct |
107.8 | | (0.0 | ) | 107.7 | 58.8 | 23.1 | 20.5 | 5.3 | |||||||||||||||||||||||
Affiliate Guarantee Claims |
12.7 | | | 12.7 | 12.7 | | | | ||||||||||||||||||||||||
Third Party Guarantee Claims |
69.7 | 0.1 | (0.2 | ) | 69.5 | 69.5 | | | | |||||||||||||||||||||||
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|||||||||||||||||
Total Liabilities Subject to Compromise |
328.1 | 0.1 | (0.3 | ) | 327.9 | 245.9 | 29.8 | 43.0 | 9.1 | |||||||||||||||||||||||
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Taxes Payable |
0.2 | | | 0.2 | 0.4 | 0.0 | (0.2 | ) | (0.0 | ) | ||||||||||||||||||||||
Secured Claims Payable to Third parties |
2.0 | | | 2.0 | 2.0 | | | | ||||||||||||||||||||||||
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Total Claims |
$ | 330.3 | $ | 0.1 | $ | (0.3 | ) | $ | 330.2 | $ | 248.4 | $ | 29.9 | $ | 42.8 | $ | 9.1 | |||||||||||||||
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Allowed Claims |
319.6 | 0.1 | | 319.6 | 240.7 | 29.8 | 40.7 | 8.3 | ||||||||||||||||||||||||
Estimated Unresolved Claims to be Allowed |
10.8 | | (0.3 | ) | 10.5 | 7.6 | 0.0 | 2.1 | 0.8 | |||||||||||||||||||||||
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Total Claims |
$ | 330.3 | $ | 0.1 | $ | (0.3 | ) | $ | 330.2 | $ | 248.4 | $ | 29.9 | $ | 42.8 | $ | 9.1 | |||||||||||||||
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Less : Claims Distributions and other reductions (1) (2) |
(128.3 | ) | (80.9 | ) | (23.4 | ) | (16.8 | ) | (7.2 | ) | ||||||||||||||||||||||
Post Petition Interest paid (2) |
(0.2 | ) | | | | (0.2 | ) | |||||||||||||||||||||||||
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|||||||||||||||||||||||
Net Claim Liability at December 31, 2015 |
$ | 201.7 | $ | 167.5 | $ | 6.4 | $ | 26.1 | $ | 1.7 | ||||||||||||||||||||||
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All values that are exactly zero are shown as -. Values between zero and $0.5 million appear as 0. Totals may not foot due to rounding.
(1) | Claim Distributions and other reductions include (i) distributions on allowed claims, (ii) reductions of the liabilities related to certain satisfied claims, (iii) the assignment of claims to their respective parents, and (iv) certain netting agreements between Debtors and Non-Controlled Affiliates. |
(2) | Claims Distributions and other reductions and Post-Petition Interest paid include: |
($ in billions) | Total Debtors |
LBHI | LCPI | LBSF | Other Debtors |
|||||||||||||||
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Claims Distributions and Post Petition Interest paid |
$ | 105.4 | $ | 68.3 | $ | 17.8 | $ | 12.9 | $ | 6.3 | ||||||||||
Other Reductions |
||||||||||||||||||||
Intercompany Funding Adjustments |
7.9 | | 4.1 | 3.0 | 0.8 | |||||||||||||||
Plan Adjustments |
(0.6 | ) | (2.6 | ) | 1.0 | 0.8 | 0.3 | |||||||||||||
Assignment of Claims (a) |
5.4 | 5.3 | 0.1 | | | |||||||||||||||
Third Party Guarantee Claims Satisfied (b) |
8.4 | 8.4 | | | | |||||||||||||||
Freddie Mac Settlement |
1.1 | 1.1 | | | | |||||||||||||||
Convenience Claims and other |
1.0 | 0.4 | 0.4 | 0.1 | 0.0 | |||||||||||||||
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Total Claims Distributions and other reductions and Post Petition Interest paid |
$ | 128.5 | $ | 80.9 | $ | 23.4 | $ | 16.8 | $ | 7.4 | ||||||||||
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(a) | Claims assigned by Non-Controlled Affiliates (primarily LBSN of $3.2 billion and LB UK Financing Limited of $2.1 billion), net of distributions, to LBHI in connection with settlement agreements with Non-Controlled Affiliates. |
(b) | Allowed Guarantee claims (primarily Bankhaus $7.9 billion, LOTC $0.2 billion and LBCC $0.2 billion), net of distributions, deemed satisfied as a result of distributions to creditors from the combination of the primary obligor and LBHI as the guarantor. |
Page 27
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 28
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 29
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 30
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 31
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 32
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Page 33
Quarterly Financial Report as of December 31, 2015 (Unaudited)
III. Balance Sheets
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of December 31, 2015
(Unaudited)
($ in millions) | Lehman Brothers Inc. 08-13555 |
Lehman 08-13888 |
Lehman Brothers Commodity Services Inc. 08-13885 |
Lehman Brothers Commercial Corporation 08-13901 |
Lehman OTC 08-13893 |
Lehman 08-13902 |
Lehman 08-13899 |
Lehman Inc. 08- |
Luxembourg Finance S.a.r.l. 09-10108 |
Other (2) |
Total Debtor |
Total Debtor- |
Total Company |
|||||||||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 85 | $ | 58 | $ | 6 | $ | 9 | $ | 3 | $ | 32 | $ | 169 | $ | 32 | $ | 2 | $ | 117 | $ | 512 | $ | 443 | $ | 955 | ||||||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
3,604 | 1,044 | 99 | 82 | 0 | 0 | 2 | 25 | 0 | 148 | 5,005 | 75 | 5,080 | |||||||||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
36 | 0 | | | | | | 210 | | | 245 | 384 | 630 | |||||||||||||||||||||||||||||||||||||||
Loans and Residential Real Estate |
79 | | | | | | | 80 | | | 159 | 41 | 200 | |||||||||||||||||||||||||||||||||||||||
Principal investments |
0 | | | | | | | 3 | | | 3 | 1,253 | 1,257 | |||||||||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| 160 | 0 | | 0 | | | | | 6 | 166 | 1 | 167 | |||||||||||||||||||||||||||||||||||||||
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Total Financial instruments and other inventory positions |
115 | 160 | 0 | | 0 | | | 293 | | 6 | 574 | 1,680 | 2,254 | |||||||||||||||||||||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
1,988 | | | | | | | | | | 1,988 | | 1,988 | |||||||||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
659 | 885 | 0 | 240 | 572 | 200 | 0 | 327 | 0 | 7 | 2,892 | 672 | 3,564 | |||||||||||||||||||||||||||||||||||||||
Investments in Affiliates |
(27,495 | ) | 184 | | | | | | 473 | | (189 | ) | (27,028 | ) | (22,402 | ) | (49,430 | ) | ||||||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
28,887 | 508 | 302 | 15 | 0 | | 1 | 5,013 | 0 | 389 | 35,116 | 4,344 | 39,460 | |||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
19,943 | 1,270 | 127 | 227 | | | | 137 | | 18 | 21,722 | 1,192 | 22,914 | |||||||||||||||||||||||||||||||||||||||
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Total Due from Affiliates |
48,830 | 1,778 | 429 | 243 | 0 | | 1 | 5,150 | 0 | 407 | 56,837 | 5,537 | 62,374 | |||||||||||||||||||||||||||||||||||||||
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Total Assets |
$ | 27,787 | $ | 4,109 | $ | 533 | $ | 574 | $ | 576 | $ | 232 | $ | 173 | $ | 6,299 | $ | 2 | $ | 495 | $ | 40,780 | $ | (13,995 | ) | $ | 26,785 | |||||||||||||||||||||||||
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Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 2,385 | $ | 11 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 475 | $ | 0 | $ | 13 | $ | 2,885 | $ | 605 | $ | 3,490 | ||||||||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
| | | | | | | 0 | | | 0 | 12,551 | 12,551 | |||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | | | | | | 517 | 517 | |||||||||||||||||||||||||||||||||||||||
Total Due to Affiliates |
| | | | | | | 0 | | | 0 | 13,068 | 13,068 | |||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
2,036 | | | | | | | | | | 2,036 | | 2,036 | |||||||||||||||||||||||||||||||||||||||
Taxes Payable |
389 | (188 | ) | (22 | ) | (6 | ) | 37 | (13 | ) | 1 | 25 | | (2 | ) | 221 | 93 | 314 | ||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
165,036 | 26,260 | 373 | 334 | 77 | 0 | 4 | 6,395 | 173 | 747 | 199,398 | 0 | 199,399 | |||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
Total Liabilities |
169,845 | 26,082 | 351 | 328 | 114 | (13 | ) | 5 | 6,895 | 173 | 758 | 204,540 | 13,767 | 218,306 | ||||||||||||||||||||||||||||||||||||||
Stockholders Equity |
(142,058 | ) | (21,973 | ) | 182 | 246 | 461 | 244 | 168 | (596 | ) | (171 | ) | (262 | ) | (163,760 | ) | (27,762 | ) | (191,522 | ) | |||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | 27,787 | $ | 4,109 | $ | 533 | $ | 574 | $ | 576 | $ | 232 | $ | 173 | $ | 6,299 | $ | 2 | $ | 495 | $ | 40,780 | $ | (13,995 | ) | $ | 26,785 | |||||||||||||||||||||||||
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See accompanying Notes to Balance Sheets
Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) | Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries. |
(2) | Certain Other Debtors Balance Sheets are presented on page 35. |
(3) | Certain Debtor-Controlled Entities Balance Sheets are presented on page 36. |
Page 34
Quarterly Financial Report as of December 31, 2015 (Unaudited)
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of December 31, 2015 (Certain Other Debtors)
(Unaudited)
($ in millions) | LB 745 LLC (2) 08-13600 |
CES Aviation LLC (2) |
CES Aviation V (2) 08-13906 |
CES Aviation IX (2) 08-13907 |
Structured Asset Securities Corporation 09-10558 |
East Dover Ltd 08-13908 |
Lehman Scottish Finance LP 08-13904 |
LB Rose Ranch LLC 09-10560 |
LB 2080 Kalakaua Owners LLC (2) 09-12516 |
BNC Mortgage LLC 09-10137 |
LB 09-17503 |
LB Preferred Somerset LLC (2) 09-17505 |
PAMI Statler 08-13664 |
MERIT LLC 09-17331 |
Other Debtors (1) |
|||||||||||||||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 51 | $ | 4 | $ | 0 | $ | 0 | $ | 0 | $ | (0 | ) | $ | | $ | (1 | ) | $ | (0 | ) | $ | 13 | $ | | $ | | $ | | $ | 49 | $ | 117 | |||||||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
| | | | 140 | 0 | 2 | 1 | | 2 | | | | 3 | 148 | |||||||||||||||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Loans and Residential Real Estate |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Principal investments |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| | | | | | | | | | | | | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Total Financial instruments and other inventory positions |
| | | | | | | | | | | | | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
0 | | | | 0 | 4 | | 4 | 0 | | | 0 | | | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Investments in Affiliates |
| | | | | | (189 | ) | | | | | | | | (189 | ) | |||||||||||||||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
138 | | 0 | | 154 | | 67 | | | 1 | | | | 28 | 389 | |||||||||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
0 | | | | | | | | | | | | | 17 | 18 | |||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Total Due from Affiliates |
139 | | 0 | | 154 | | 67 | | | 1 | | | | 45 | 407 | |||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Total Assets |
$ | 190 | $ | 4 | $ | 0 | $ | 0 | $ | 294 | $ | 4 | $ | (121 | ) | $ | 4 | $ | 0 | $ | 17 | $ | | $ | 0 | $ | | $ | 103 | $ | 495 | |||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | | $ | | $ | 0 | $ | 0 | $ | 4 | $ | 0 | $ | 2 | $ | 1 | $ | | $ | 2 | $ | 0 | $ | | $ | 0 | $ | 4 | $ | 13 | ||||||||||||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Total Due to Affiliates |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
| | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Taxes Payable |
| | | | (2 | ) | | | | (0 | ) | (0 | ) | | | | | (2 | ) | |||||||||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
| | 4 | 3 | 412 | 2 | | 2 | 32 | 5 | 7 | 10 | | 270 | 747 | |||||||||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Total Liabilities |
| | 4 | 3 | 413 | 3 | 2 | 3 | 31 | 7 | 8 | 10 | 0 | 274 | 758 | |||||||||||||||||||||||||||||||||||||||||||||
Stockholders Equity |
190 | 4 | (4 | ) | (3 | ) | (119 | ) | 1 | (122 | ) | 1 | (31 | ) | 9 | (8 | ) | (10 | ) | (0 | ) | (171 | ) | (262 | ) | |||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | 190 | $ | 4 | $ | 0 | $ | 0 | $ | 294 | $ | 4 | $ | (121 | ) | $ | 4 | $ | 0 | $ | 17 | $ | | $ | 0 | $ | | $ | 103 | $ | 495 | |||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||||||
See accompanying Notes to Balance Sheets |
Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) | Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries. |
(2) | The chapter 11 case was closed on January 28, 2016, pursuant to a final decree entered by the Bankruptcy Court (Docket No. 51920). |
Page 35
Quarterly Financial Report as of December 31, 2015 (Unaudited)
LEHMAN BROTHERS HOLDINGS INC. and NON DEBTOR ENTITIES
Balance Sheets As of December 31, 2015 (Debtor-Controlled Entities)
(Unaudited)
($ in millions) | Lehman ALI |
Property Asset |
LB I Group Inc. (3) |
Lehman Brothers Bancorp Inc. (3) |
PAMI Holdings LLC |
314 Common- wealth Ave Inc. (3) |
LB U.K. Holdings (Delaware) Inc. |
PAMI ALI LLC |
Lux Finance Sarl |
Other Debtor- Controlled Entities |
Debtor - Controlled Group Elims (1) |
Total Debtor- Controlled Entities |
||||||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 46 | $ | 5 | $ | 104 | $ | 93 | $ | 22 | $ | 0 | $ | 2 | $ | 3 | $ | 1 | $ | 168 | $ | | $ | 443 | ||||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
2 | 6 | 4 | 2 | 4 | | | 10 | | 48 | | 75 | ||||||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
(12 | ) | 131 | | 0 | 211 | (0 | ) | (0 | ) | 26 | | 28 | | 384 | |||||||||||||||||||||||||||||||||
Loans and Residential Real Estate |
41 | 0 | 1 | 0 | | | | | | | | 41 | ||||||||||||||||||||||||||||||||||||
Principal investments |
0 | | 942 | | | | (0 | ) | 1 | | 310 | | 1,253 | |||||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| | | | | | | | | 1 | | 1 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total Financial instruments and other inventory positions |
28 | 131 | 942 | 0 | 211 | (0 | ) | (0 | ) | 28 | | 339 | | 1,680 | ||||||||||||||||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
216 | 0 | 37 | 76 | 0 | 93 | 74 | 27 | | 297 | (148 | ) | 672 | |||||||||||||||||||||||||||||||||||
Investments in Affiliates |
(27,090 | ) | 1 | 0 | 9 | | (86 | ) | 56 | (217 | ) | | (168 | ) | 5,091 | (22,402 | ) | |||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
3,331 | | 552 | | | 178 | 64 | 697 | | 749 | (1,227 | ) | 4,344 | |||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
0 | | 1 | | | 7 | 374 | 29 | 749 | 32 | | 1,192 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total Due from Affiliates |
3,332 | | 553 | | | 185 | 437 | 726 | 749 | 781 | (1,227 | ) | 5,537 | |||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total Assets |
$ | (23,466 | ) | $ | 143 | $ | 1,639 | $ | 180 | $ | 237 | $ | 193 | $ | 569 | $ | 576 | $ | 750 | $ | 1,466 | $ | 3,716 | $ | (13,995 | ) | ||||||||||||||||||||||
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|||||||||||||||||||||||||
Liabilities and Stockholders Equity Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 5 | $ | 7 | $ | 305 | $ | 65 | $ | 2 | $ | 0 | $ | 1 | $ | 72 | $ | | $ | 297 | $ | (149 | ) | $ | 605 | |||||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
3,096 | | 3,400 | 71 | | 925 | 213 | 3,137 | 939 | 1,996 | (1,227 | ) | 12,551 | |||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
1 | | 32 | 11 | | | 79 | 8 | | 386 | | 517 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total Due to Affiliates |
3,097 | | 3,432 | 82 | | 925 | 293 | 3,145 | 939 | 2,382 | (1,227 | ) | 13,068 | |||||||||||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Taxes Payable |
68 | | 5 | | | 10 | (18 | ) | 27 | | | | 93 | |||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
| | | | | | | | | 0 | | 0 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total Liabilities |
3,170 | 7 | 3,742 | 147 | 2 | 935 | 276 | 3,245 | 939 | 2,679 | (1,376 | ) | 13,767 | |||||||||||||||||||||||||||||||||||
Stockholders Equity |
(26,636 | ) | 136 | (2,102 | ) | 33 | 235 | (743 | ) | 293 | (2,668 | ) | (189 | ) | (1,213 | ) | 5,092 | (27,762 | ) | |||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | (23,466 | ) | $ | 143 | $ | 1,639 | $ | 180 | $ | 237 | $ | 193 | $ | 569 | $ | 576 | $ | 750 | $ | 1,466 | $ | 3,716 | $ | (13,995 | ) | ||||||||||||||||||||||
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|||||||||||||||||||||||||
See accompanying Notes to Balance Sheets |
Note: | All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0. |
(1) | Balances reflect the impact of eliminations of (i) intercompany balances only between Debtor-Controlled Entities and (ii) investments in subsidiaries only between Debtor-Controlled Entities. |
(2) | Lehman Ali Inc is reflected on a consolidated basis excluding wholly owned subsidiaries that are Debtor entities, 314 Commonwealth Ave Inc, and Pami ALI LLC. |
(3) | Entities are reflected on a consolidated basis, e.g. Property Asset Management Inc. includes its wholly owned subsidiary, Orbit RE LLC. |
Page 36
Quarterly Financial Report as of December 31, 2015 (Unaudited)
IV. Accompanying Schedules
Commercial Real Estate by Product Type (1)
Lehman | Lehman | Property Asset | Other Debtor- | Total LBHI | Cost and Unpaid |
|||||||||||||||||||||||||||||
Brothers | Commercial | Total Debtor | Management | PAMI Holdings | Controlled | Controlled | Principal | |||||||||||||||||||||||||||
$ in millions |
Holdings Inc. | Paper Inc. | Entities | Inc. | LLC | Entities | Entities | Balances (2) | ||||||||||||||||||||||||||
Commercial Real Estate |
||||||||||||||||||||||||||||||||||
North America |
||||||||||||||||||||||||||||||||||
Whole loans Senior |
$ | 0 | $ | 19 | $ | 20 | $ | | $ | | $ | | $ | 20 | $ | 32 | ||||||||||||||||||
Equity |
| | | 46 | 103 | 16 | 165 | 345 | ||||||||||||||||||||||||||
Real Estate Owned and Other |
36 | 61 | 96 | 85 | 109 | 13 | 303 | 1,087 | ||||||||||||||||||||||||||
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|||||||||||||||||||
Subtotal |
36 | 80 | 116 | 131 | 211 | 29 | 487 | 1,464 | ||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||
Whole loans B-notes/Mezzanine |
| 75 | 75 | | | | 75 | 164 | ||||||||||||||||||||||||||
Equity |
| 54 | 54 | | | 13 | 67 | 173 | ||||||||||||||||||||||||||
Other |
| | | | | 1 | 1 | 5 | ||||||||||||||||||||||||||
Subtotal |
| 130 | 130 | | | 13 | 143 | 342 | ||||||||||||||||||||||||||
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|||||||||||||||||||
Total Commercial Real Estate |
$ | 36 | $ | 210 | $ | 246 | $ | 131 | $ | 211 | $ | 42 | $ | 630 | $ | 1,805 | ||||||||||||||||||
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Notes:
(1) | Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | Cost information primarily includes: (i) for whole loans and corporate loans, the remaining outstanding principal balance; (ii) for equity, the total acquisition amount net of distributions deemed return of capital; (iii) for REO, the cost/unpaid principal balance as determined in (i) or (ii) as of the date of ownership of the property plus or minus principal balance changes subsequent to ownership. There are 6 portfolio investments recorded at zero recovery value with a cost/ unpaid principal balance of approximately $57 million that are not included in the schedule above. |
Page 37
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Commercial Real Estate By Property Type and Region (1)
Cost and | ||||||||||||||||
North | Unpaid Principal | |||||||||||||||
$ in millions |
America | Europe | Total | Balances (2) | ||||||||||||
Commercial Real Estate |
||||||||||||||||
Senior Whole Loans |
||||||||||||||||
Hotel |
$ | 11 | $ | | $ | 11 | $ | 10 | ||||||||
Land/Other |
8 | | 8 | 22 | ||||||||||||
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|||||||||
Total Senior Whole Loans by Type |
19 | | 19 | 32 | ||||||||||||
B-Note/Mezz Whole Loans |
||||||||||||||||
Office/Industrial |
| 75 | 75 | 164 | ||||||||||||
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|||||||||
Total B-Notes/Mezz Whole Loans by Type |
| 75 | 75 | 164 | ||||||||||||
Equity |
||||||||||||||||
Office/Industrial |
33 | 3 | 36 | 25 | ||||||||||||
Hotel |
| 10 | 10 | 71 | ||||||||||||
Multi-family |
8 | | 8 | 3 | ||||||||||||
Mixed-use |
| 54 | 54 | 103 | ||||||||||||
Condominium |
84 | | 84 | 234 | ||||||||||||
Land/Other |
40 | | 40 | 83 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Equity by Type |
165 | 67 | 232 | 518 | ||||||||||||
Real Estate Owned |
||||||||||||||||
Hotel |
138 | | 138 | 151 | ||||||||||||
Land |
155 | | 155 | 874 | ||||||||||||
Other |
10 | 1 | 11 | 66 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Real Estate Owned by Type |
303 | 1 | 304 | 1,091 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Commercial Real Estate |
$ | 487 | $ | 143 | $ | 630 | $ | 1,805 | ||||||||
|
|
|
|
|
|
|
|
Notes:
(1) | Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | Cost information primarily includes: (i) for whole loans and corporate loans, the remaining outstanding principal balance; (ii) for equity, the total acquisition amount net of distributions deemed return of capital; (iii) for REO, the cost/unpaid principal balance as determined in (i) or (ii) as of the date of ownership of the property plus or minus principal balance changes subsequent to ownership. There are 6 portfolio investments recorded at zero recovery value with a cost/ unpaid principal balance of approximately $57 million that are not included in the schedule above. |
Page 38
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Loans (by Maturity Date) and Residential Real Estate (1)
$ in millions | Debtor Entities | |||||||||||||||
Maturity Date by Year |
Lehman Brothers Holdings Inc. |
Lehman Commercial Paper Inc. |
Debtor- Controlled Entities |
Total LBHI- Controlled Entities |
||||||||||||
Notional (2) | ||||||||||||||||
2016 |
3 | | 24 | 27 | ||||||||||||
2017 and over |
5 | 299 | | 304 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Loans |
7 | 299 | 24 | 331 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Residential Real Estate (3) |
229 | 0 | 47 | 276 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Loans and Residential Real Estate |
$ | 236 | $ | 299 | $ | 71 | $ | 606 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Recovery Value | ||||||||||||||||
2016 |
3 | | 22 | 25 | ||||||||||||
2017 and over (4) |
1 | 79 | | 80 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Loans |
3 | 79 | 22 | 104 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Equity positionsLoans |
32 | 1 | 1 | 33 | ||||||||||||
Residential Real Estate |
44 | 0 | 19 | 63 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Loans and Residential Real Estate |
$ | 79 | $ | 80 | $ | 41 | $ | 200 | ||||||||
|
|
|
|
|
|
|
|
Notes:
(1) | This schedule reflects loans and residential real estate assets that are included on the Balance Sheets. Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | Represents the remaining outstanding principal balance on only Loans by stated maturity dates. |
(3) | Cost information primarily represents: (i) for whole loans (RV $0.2 million / Cost $0.3 million), the remaining outstanding or unpaid principal balance; and (ii) for mortgage backed securities (MBS) (RV $61.6 million / Cost $275.5 million), the initial Class Principal amount. MBS consists of Excess Spread, Residual, Interest-Only and Subordinated tranches. Cost information is not included for legal claims, mortgage servicing rights and MBS with zero recovery value. |
(4) | Includes approximately $37 million in LCPI related to defaulted securities with past maturity dates. |
Page 39
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Private Equity / Principal Investments by Legal Entity and Product Type
Assets held for | ||||||||||||
the benefit of | Total per | |||||||||||
$ in millions |
Total (1) | LCPI (3) | Balance Sheets | |||||||||
By Legal Entity |
||||||||||||
Debtors: |
||||||||||||
Lehman Brothers Holdings Inc. |
$ | 0 | $ | | $ | 0 | ||||||
Lehman Commercial Paper Inc. |
303 | (300 | ) | 3 | ||||||||
|
|
|
|
|
|
|||||||
Total Debtors |
303 | (300 | ) | 3 | ||||||||
Debtor-Controlled: |
||||||||||||
LB I Group Inc. (2) |
642 | 300 | 942 | |||||||||
Other Debtor-Controlled |
311 | | 311 | |||||||||
|
|
|
|
|
|
|||||||
Total Debtor-Controlled |
953 | 300 | 1,253 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 1,257 | $ | | $ | 1,257 | ||||||
|
|
|
|
|
|
|||||||
By Product Type |
||||||||||||
Private Equity / Diversified Funds |
$ | 960 | ||||||||||
Real Estate Funds |
287 | |||||||||||
Other |
9 | |||||||||||
|
|
|||||||||||
Total |
$ | 1,257 | ||||||||||
|
|
|||||||||||
Investments at cost (4) |
$ | 1,386 | ||||||||||
Unpaid Principal Balances (5) |
$ | 42 |
Notes:
(1) | The amounts include the unencumbered assets held by a legal entity and the economic interests in the assets held by another legal entity. Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | LB I Group Inc. (read LB one Group Inc.) is a major Debtor-Controlled entity. LB I Group Inc. is presented on a consolidated basis. |
(3) | Assets held for the benefit of LCPI represents a reconciliation of the assets encumbered from LB I Group to LCPI. |
(4) | Cost information primarily includes: (i) for direct equity investments and hedge funds, the total amount funded net of distributions deemed return of capital; (ii) for partnership interests with no redemptions, the original amount funded; (iii) for partnership interests with redemptions or distributions, the ratio of cost to recovery value for the underlying portfolio assets applied to the Net Asset Value for the Companys positions; and (iv) value for assets that have been recorded at de minimis recovery value amounts. |
(5) | Represents the remaining outstanding principal balance on corporate loans. |
Page 40
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Derivative Assets and Liabilities (1)
$ in millions | Lehman Brothers Holdings Inc. |
LB 745 LLC | Lehman Brothers Special Financing Inc. |
Lehman Brothers Commodity Services Inc. |
Lehman Brothers OTC Derivatives Inc. |
Lehman Brothers Commercial Corporation |
Lehman Commercial Paper Inc. |
Lehman Brothers Financial Products Inc. |
Lehman Brothers Derivative Products Inc. |
Merit LLC | Total Debtors |
|||||||||||||||||||||||||||||||||
AssetsReceivables, Net |
||||||||||||||||||||||||||||||||||||||||||||
Open |
$ | | $ | | $ | 71 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | 71 | ||||||||||||||||||||||
Terminated / Matured |
| | 61 | 0 | | | | | | | 61 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total |
| | 132 | 0 | | | | | | | 132 | |||||||||||||||||||||||||||||||||
Other Derivative Related Assets (2) |
| | 28 | | | | | | | 6 | 34 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Derivatives and Related Assets |
$ | | $ | | $ | 160 | $ | 0 | $ | | $ | | $ | | $ | | $ | | $ | 6 | $ | 166 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
# of Counterparty contracts |
||||||||||||||||||||||||||||||||||||||||||||
Open |
| | 78 | | | | | | | | 78 | |||||||||||||||||||||||||||||||||
Termed / Matured |
| | 282 | 2 | 1 | 5 | | 23 | 2 | | 315 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total |
| | 360 | 2 | 1 | 5 | | 23 | 2 | | 393 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
SPV Receivables (3) |
$ | | $ | | $ | 18 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | 18 | ||||||||||||||||||||||
LiabilitiesPayables |
||||||||||||||||||||||||||||||||||||||||||||
Agreed (4) |
$ | (22 | ) | $ | (2 | ) | $ | (20,162 | ) | $ | (1,347 | ) | $ | (494 | ) | $ | (385 | ) | $ | (39 | ) | $ | (57 | ) | $ | (77 | ) | $ | | $ | (22,586 | ) | ||||||||||||
Pending Resolution (5) |
| | (2,291 | ) | (49 | ) | (0 | ) | (102 | ) | | | (2 | ) | | (2,445 | ) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total |
$ | (22 | ) | $ | (2 | ) | $ | (22,453 | ) | $ | (1,397 | ) | $ | (494 | ) | $ | (487 | ) | $ | (39 | ) | $ | (57 | ) | $ | (79 | ) | $ | | $ | (25,030 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
# of Counterparty contracts |
4 | 1 | 2,356 | 250 | 161 | 192 | 9 | 14 | 93 | | 3,080 |
Notes:
(1) | Refer to the accompanying Notes to the Balance Sheets for further discussion regarding derivative amounts recorded. Derivatives liabilities are presented prior to distributions on allowed claims. |
(2) | Amounts primarily include notes in various special purpose vehicles, deposits with various brokers for OTC hedges and equity positions in various corporations. |
(3) | Represents the portion of derivatives receivables resulting from transactions with counterparties deemed as special purpose vehicles including receivables from entities that structurally subordinate the rights of the Debtor. |
(4) | Agreed is defined as claims that are recorded at values agreed upon with counterparties and classified as allowed or accepted as filed. |
(5) | Pending Resolution are recorded at expected claim amounts estimated by the Company. |
Page 41
Quarterly Financial Report as of December 31, 2015 (Unaudited)
Significant Restructurings, Settlements, Sales, Wind-down, or Liquidations
October 2, 2015 December 31, 2015
$ millions |
Actual Cash Collected |
Post-Eighth Distribution Cash Flow Estimates (1) |
10/1/2015 Balance Sheets Value (2) |
Realized Gain / (Loss) Relative to Post Eighth Distribution Cash Flow Estimate |
Realized Gain / (Loss) Relative to 10/1/15 Balance Sheets Value |
|||||||||||||||
Loans and Residential Real Estate |
||||||||||||||||||||
Other Loans |
$ | 3 | $ | | $ | | $ | 3 | $ | 3 | ||||||||||
Other Residential Real Estate |
7 | 2 | 2 | 5 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Loans and Residential Real Estate |
$ | 10 | $ | 2 | $ | 2 | $ | 8 | $ | 8 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Private Equity / Principal Investments |
||||||||||||||||||||
Antero Resources LLC |
$ | 45 | $ | 50 | $ | 50 | $ | (5 | ) | $ | (5 | ) | ||||||||
Other Direct sales |
21 | 19 | 19 | 2 | 2 | |||||||||||||||
GP and LP Stakes in PE and Hedge Funds |
41 | 40 | 40 | 2 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Private Equity / Principal Investments |
$ | 108 | $ | 109 | $ | 109 | $ | (1 | ) | $ | (1 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Derivatives |
||||||||||||||||||||
Other sales |
$ | 82 | $ | 35 | $ | 35 | $ | 47 | $ | 47 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Derivatives |
$ | 82 | $ | 35 | $ | 35 | $ | 47 | $ | 47 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Real Estate |
||||||||||||||||||||
Other sales |
$ | 64 | $ | 66 | $ | 66 | $ | (2 | ) | $ | (2 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Real Estate |
$ | 64 | $ | 66 | $ | 66 | $ | (2 | ) | $ | (2 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Significant Monetizations |
$ | 264 | $ | 212 | $ | 212 | $ | 51 | $ | 51 | ||||||||||
|
|
|
|
|
|
|
|
|
|
All values that are exactly zero are shown as -. Values between zero and $0.5 million appear as 0. Totals may not foot due to rounding.
(1) | Represents estimated recoveries reflected in the Post Seventh Distribution Cash Flow Estimates for the asset. |
(2) | Represents the recorded value reported on the prior period Balance Sheets (as of October 1, 2015) for the asset. |
Page 42