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): July 29, 2019
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.) |
277 Park Avenue
New York, New York 10172
(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)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Not Applicable | Not Applicable | Not Applicable |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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 July 29, 2019, LBHI, the Plan Administrator, filed the Quarterly Financial Report as of April 4, 2019, which includes Cash Flow Estimates and Balance Sheets (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 April 4, 2019, which includes Cash Flow Estimates and Balance Sheets 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: July 31, 2019 | By: | /s/ Kristine Dickson | ||||
Name: | Kristine Dickson | |||||
Title: | Chief Financial Officer |
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 APRIL 4, 2019
DEBTORS ADDRESS: | LEHMAN BROTHERS HOLDINGS INC. | |
c/o KRISTINE DICKSON CHIEF FINANCIAL OFFICER | ||
277 PARK AVENUE | ||
46th FLOOR | ||
NEW YORK, NY 10172 | ||
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: July 29, 2019 |
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Table of Contents
I. |
Schedule of Debtors | 3 | ||||||||
II. |
Cash Flow Estimates | 4 | ||||||||
III. |
Notes to the Cash Flow Estimates | 11 | ||||||||
Note 1 - Basis of Presentation | 11 | |||||||||
Note 2 - Other Receipts | 14 | |||||||||
Note 3 - Due from/to Non-Controlled Affiliates | 15 | |||||||||
Note 4 - Due from/to Debtors and Debtor-Controlled Entities | 21 | |||||||||
Note 5 Disputed Claims | 24 | |||||||||
Note 6 Legal Proceedings | 25 | |||||||||
Note 7 Taxes Payable | 29 | |||||||||
Note 8 Subsequent Event | 29 | |||||||||
IV. |
Balance Sheets | 30 |
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 on the website listed below (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 April 4, 2019 (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 (Commencement Date) |
|||||||
Lehman Brothers Holdings Inc. (LBHI) |
08-13555 | 9/15/2008 | ||||||
Lehman Brothers Special Financing Inc. (LBSF) |
08-13888 | 10/3/2008 | ||||||
Lehman Brothers OTC Derivatives Inc. (LOTC) |
08-13893 | 10/3/2008 | ||||||
Lehman Commercial Paper Inc. (LCPI) |
08-13900 | 10/5/2008 | ||||||
BNC Mortgage LLC |
09-10137 | 1/9/2009 |
The following Debtors chapter 11 cases were closed in 2016, 2018 and 2019, pursuant to final decrees entered by the Bankruptcy Court (Docket No. 51920, No. 54163, No. 58257 and No. 59472):
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 | |||||||||
East Dover Limited |
08-13908 | 10/5/2008 | 12/15/2016 | |||||||||
Luxembourg Residential Properties Loan Finance S.a.r.l. |
09-10108 | 1/7/2009 | 12/15/2016 | |||||||||
Merit LLC |
09-17331 | 12/14/2009 | 12/15/2016 | |||||||||
Lehman Brothers Derivative Products Inc. (LBDP) |
08-13899 | 10/5/2008 | 06/14/2018 | |||||||||
Lehman Brothers Financial Products Inc. (LBFP) |
08-13902 | 10/5/2008 | 06/14/2018 | |||||||||
Lehman Scottish Finance L.P. |
08-13904 | 10/5/2008 | 06/14/2018 | |||||||||
LB Rose Ranch LLC |
09-10560 | 2/9/2009 | 06/14/2018 | |||||||||
Lehman Brothers Commodity Services Inc. (LBCS) |
08-13902 | 10/3/2008 | 02/11/2019 | |||||||||
Lehman Brothers Commercial Corporation (LBCC) |
08-13901 | 10/5/2008 | 02/11/2019 | |||||||||
Structured Asset Securities Corporation |
09-10558 | 2/9/2009 | 02/11/2019 |
Page 3
Quarterly Financial Report as of April 4, 2019 (Unaudited)
II. Cash Flow Estimates
Lehman Brothers Holdings Inc.
($ in millions) | As of 12/31/18 |
Less: Cash Activity 1/1/19 - 4/4/19 |
Changes | Transfers, Reclassifications, Adjustments |
As of 4/4/19 (a) |
|||||||||||||||||
CASH AND INVESTMENTS |
||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||
Disputed unsecured claims |
$ | 52 | $ | | $ | | $ | | $ | 52 | ||||||||||||
Distributions on Allowed Claims (not remitted) |
6 | (1 | ) | | | 6 | ||||||||||||||||
Secured, Admin, Priority Claims and Other |
23 | (7 | ) | | | 16 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal - Reserves for Claims |
$ | 81 | $ | (8 | ) | $ | | $ | | $ | 73 | |||||||||||
Reserves for Operating Expenses |
$ | 126 | $ | (38 | ) | $ | 15 | $ | | $ | 103 | |||||||||||
Reserves for Incentive Fees |
3 | | 0 | | 4 | |||||||||||||||||
Other Reserves |
5 | 1 | | | 6 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Cash & Investments - Restricted |
$ | 216 | $ | (46 | ) | $ | 15 | $ | | $ | 185 | |||||||||||
Total Cash & Investments - Unrestricted |
$ | 65 | $ | 32 | $ | (15 | ) | $ | | $ | 82 | |||||||||||
TOTAL CASH AND INVESTMENTS [A] |
$ | 280 | $ | (14 | ) | $ | | $ | | $ | 267 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CASH FLOW ESTIMATES |
||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | ||||||||||||
Residential Real Estate and Other |
8 | (6 | ) | 11 | | 13 | ||||||||||||||||
Private Equity/Principal Investments |
1 | (0 | ) | (0 | ) | | 1 | |||||||||||||||
Derivatives |
| | 0 | | 0 | |||||||||||||||||
Other |
Note 2 | 109 | (10 | ) | 14 | | 113 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Net Receipts |
$ | 117 | $ | (16 | ) | $ | 25 | $ | | $ | 126 | |||||||||||
Recoveries From Non-Controlled Affiliates |
Note 3 |
|||||||||||||||||||||
Europe |
$ | 1,003 | $ | (80 | ) | $ | 82 | $ | (79 | ) | $ | 926 | ||||||||||
Asia |
122 | (16 | ) | 4 | | 110 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 1,125 | $ | (96 | ) | $ | 86 | $ | (79 | ) | $ | 1,036 | ||||||||||
Recoveries From Controlled Affiliates |
||||||||||||||||||||||
Pre-Petition Intercompany Receipts (b) |
Note 4 | $ | 175 | $ | (55 | ) | $ | 11 | $ | | $ | 131 | ||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) (c) |
(44 | ) | (28 | ) | 19 | | (52 | ) | ||||||||||||||
Investments in Affiliates (d) |
767 | (39 | ) | 103 | 79 | 910 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Recoveries From Controlled Affiliates |
$ | 897 | $ | (122 | ) | $ | 133 | $ | 79 | $ | 988 | |||||||||||
Operating Expenses |
$ | (144 | ) | $ | 38 | $ | (15 | ) | $ | | $ | (121 | ) | |||||||||
Incentive Fees |
$ | (3 | ) | $ | | $ | (0 | ) | $ | | $ | (4 | ) | |||||||||
Estimated Taxes Payable |
Note 7 |
$ | (41 | ) | $ | | $ | | $ | | $ | (41 | ) | |||||||||
TOTAL CFO + OTHER RECEIPTS [B] |
$ | 1,951 | $ | (195 | ) | $ | 230 | $ | 0 | $ | 1,986 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTHER ADJUSTMENTS |
||||||||||||||||||||||
(Less): Cash held for the benefit of third parties (e) |
$ | (11 | ) | $ | | $ | | $ | | $ | (11 | ) | ||||||||||
Plus/(Less): Plan Adjustments from Participatory Debtors |
11 | (4 | ) | 1 | | 8 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OTHER ADJUSTMENTS [C] |
$ | 0 | $ | (4 | ) | $ | 1 | $ | | $ | (3 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ESTIMATED CASH AVAILABLE FOR DISTRIBUTIONS [A+B+C] |
$ | 2,231 | $ | (213 | ) | $ | 231 | $ | 0 | $ | 2,250 | |||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||||
(a) | These Cash Flow Estimates as of April 4, 2019 do not reflect the impact of the Eighteenth Plan Distribution on July 18, 2019 (see Note 8-Subsequent Event). |
(b) | The Company estimates that LBHI will receive approximately $0.1 billion, primarily from LCPI and LBSF. |
(c) | Aurora Commercial Corp. (formerly known as Aurora Bank FSB) (Aurora) is a wholly-owned subsidiary of Lehman Brothers Bancorp Inc. (LBB), which is a wholly-owned subsidiary of LBHI. Aurora is a party to various litigation matters, primarily matters in which various counterparties have asserted claims against Aurora arising out of Auroras mortgage servicing operations. The ultimate recovery value from Aurora may vary materially from the estimates included herein. On March 24, 2019, Aurora and its subsidiary Aurora Loan Services filed chapter 11 petitions in the Bankruptcy Court. Additional information and filings in the case can be found at https://cases.primeclerk.com/Aurora/. |
(d) | The Company estimates that LBHI will receive approximately $0.9 billion, primarily from Lehman Brothers Holdings Scottish LP 2 (SLP2). SLP2 is the parent company of Lehman Brothers Holdings Scottish LP 3 (SLP3) and is wholly owned by LBHI. |
(e) | Amounts excluded from Cash Available for Distributions include Distributions on Allowed Claims (not remitted) and other items. |
Page 4
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Lehman Brothers Special Financing Inc.
($ in millions) | As of 12/31/18 |
Less: Cash Activity 1/1/19 - 4/4/19 |
Changes | Transfers, Reclassifications, Adjustments |
As of 4/4/19 |
|||||||||||||||||
CASH AND INVESTMENTS |
||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||
Disputed unsecured claims |
$ | 1 | $ | | $ | | $ | | $ | 1 | ||||||||||||
Distributions on Allowed Claims (not remitted) |
| | | | | |||||||||||||||||
Secured, Admin, Priority Claims and Other |
8 | 1 | | | 8 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal - Reserves for Claims |
$ | 9 | $ | 1 | $ | | $ | | $ | 10 | ||||||||||||
Reserves for Operating Expenses |
$ | 13 | $ | (5 | ) | $ | (2 | ) | $ | | $ | 6 | ||||||||||
Reserves for Incentive Fees |
5 | (4 | ) | | | 1 | ||||||||||||||||
Other Reserves |
| | | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Cash & Investments - Restricted |
$ | 27 | $ | (8 | ) | $ | (2 | ) | $ | | $ | 17 | ||||||||||
Total Cash & Investments - Unrestricted |
$ | 14 | $ | (13 | ) | $ | 2 | $ | | $ | 3 | |||||||||||
TOTAL CASH AND INVESTMENTS [A] |
$ | 42 | $ | (22 | ) | $ | | $ | | $ | 20 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CASH FLOW ESTIMATES |
||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | ||||||||||||
Residential Real Estate and Other |
| | | | | |||||||||||||||||
Private Equity/Principal Investments |
| | | | | |||||||||||||||||
Derivatives |
22 | (5 | ) | (1 | ) | | 16 | |||||||||||||||
Other |
Note 2 | 5 | (1 | ) | 2 | | 6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Net Receipts |
$ | 27 | $ | (6 | ) | $ | 1 | $ | | $ | 22 | |||||||||||
Recoveries From Non-Controlled Affiliates |
Note 3 | |||||||||||||||||||||
Europe |
$ | 13 | $ | 0 | $ | 3 | $ | | $ | 17 | ||||||||||||
Asia |
0 | | (0 | ) | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 13 | $ | 0 | $ | 3 | $ | | $ | 17 | ||||||||||||
Recoveries From Controlled Affiliates |
||||||||||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
Note 4 | $ | 6 | $ | (1 | ) | $ | 1 | $ | | $ | 6 | ||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) |
(10 | ) | 9 | (5 | ) | | (7 | ) | ||||||||||||||
Investments in Affiliates |
| | | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Recoveries From Controlled Affiliates |
$ | (3 | ) | $ | 7 | $ | (5 | ) | $ | | $ | (1 | ) | |||||||||
Operating Expenses |
$ | (14 | ) | $ | 5 | $ | 2 | $ | | $ | (7 | ) | ||||||||||
Incentive Fees |
$ | (1 | ) | $ | | $ | (0 | ) | $ | | $ | (1 | ) | |||||||||
Estimated Taxes Payable |
Note 7 | $ | | $ | | $ | | $ | | $ | | |||||||||||
TOTAL CFO + OTHER RECEIPTS [B] |
$ | 22 | $ | 7 | $ | 1 | $ | | $ | 30 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTHER ADJUSTMENTS |
||||||||||||||||||||||
(Less): Cash held for the benefit of third parties |
$ | | $ | | $ | | $ | | $ | | ||||||||||||
Plus/(Less): Plan Adjustments from Participatory Debtors |
(4 | ) | 1 | (0 | ) | | (3 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OTHER ADJUSTMENTS [C] |
$ | (4 | ) | $ | 1 | $ | (0 | ) | $ | | $ | (3 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ESTIMATED CASH AVAILABLE FOR DISTRIBUTIONS [A+B+C] |
$ | 59 | $ | (14 | ) | $ | 1 | $ | | $ | 47 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(a) | These Cash Flow Estimates as of April 4, 2019 do not reflect the impact of the Eighteenth Plan Distribution on July 18, 2019 (see Note 8-Subsequent Event). |
Page 5
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Lehman Commercial Paper Inc.
($ in millions) | As of 12/31/18 |
Less: Cash Activity 1/1/19 - 4/4/19 |
Changes | Transfers, Reclassifications, Adjustments |
As of 4/4/19 (a) |
|||||||||||||||||
CASH AND INVESTMENTS |
||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||
Disputed unsecured claims |
$ | | $ | | $ | | $ | | $ | | ||||||||||||
Distributions on Allowed Claims (not remitted) |
0 | | | | 0 | |||||||||||||||||
Secured, Admin, Priority Claims and Other |
4 | (3 | ) | | | 1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal - Reserves for Claims |
$ | 4 | $ | (3 | ) | $ | | $ | | $ | 1 | |||||||||||
Reserves for Operating Expenses |
$ | 3 | $ | (2 | ) | $ | 1 | $ | | $ | 2 | |||||||||||
Reserves for Incentive Fees |
4 | (3 | ) | (0 | ) | | 1 | |||||||||||||||
Other Reserves |
0 | | | | 0 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Cash & Investments - Restricted |
$ | 11 | $ | (8 | ) | $ | 1 | $ | | $ | 4 | |||||||||||
Total Cash & Investments - Unrestricted |
$ | 19 | $ | (17 | ) | $ | (1 | ) | $ | | $ | 1 | ||||||||||
TOTAL CASH AND INVESTMENTS [A] |
$ | 30 | $ | (25 | ) | $ | | $ | | $ | 5 | |||||||||||
CASH FLOW ESTIMATES |
||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||
Commercial Real Estate |
$ | 3 | $ | (4 | ) | $ | 2 | $ | | $ | 1 | |||||||||||
Residential Real Estate and Other |
5 | (4 | ) | 1 | | 2 | ||||||||||||||||
Private Equity/Principal Investments |
0 | | | | 0 | |||||||||||||||||
Derivatives |
| | | | | |||||||||||||||||
Other |
Note 2 | | (0 | ) | 0 | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Net Receipts |
$ | 8 | $ | (8 | ) | $ | 3 | $ | | $ | 3 | |||||||||||
Recoveries From Non-Controlled Affiliates |
Note 3 | |||||||||||||||||||||
Europe |
$ | 0 | $ | (0 | ) | $ | 0 | $ | | $ | 0 | |||||||||||
Asia |
| | | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 0 | $ | (0 | ) | $ | 0 | $ | | $ | 0 | |||||||||||
Recoveries From Controlled Affiliates |
||||||||||||||||||||||
Pre-Petition Intercompany Receipts |
Note 4 | $ | 67 | $ | (6 | ) | $ | 5 | $ | | $ | 66 | ||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) |
(8 | ) | 8 | (1 | ) | | (1 | ) | ||||||||||||||
Investments in Affiliates |
3 | | (0 | ) | | 3 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Sub-Total - Recoveries From Controlled Affiliates |
$ | 62 | $ | 3 | $ | 4 | $ | | $ | 68 | ||||||||||||
Operating Expenses |
$ | (4 | ) | $ | 0 | $ | 0 | $ | | $ | (3 | ) | ||||||||||
Incentive Fees |
$ | (1 | ) | $ | | $ | (0 | ) | $ | | $ | (1 | ) | |||||||||
Estimated Taxes Payable |
Note 7 | $ | (5 | ) | $ | | $ | | $ | | $ | (5 | ) | |||||||||
TOTAL CFO + OTHER RECEIPTS [B] |
$ | 60 | $ | (5 | ) | $ | 7 | $ | | $ | 63 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
OTHER ADJUSTMENTS |
||||||||||||||||||||||
(Less): Cash held for the benefit of third parties |
$ | | $ | | $ | | $ | | $ | | ||||||||||||
Plus/(Less): Plan Adjustments from Participatory Debtors |
(7 | ) | 2 | (0 | ) | | (5 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL OTHER ADJUSTMENTS [C] |
$ | (7 | ) | $ | 2 | $ | (0 | ) | $ | | $ | (5 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
ESTIMATED CASH AVAILABLE FOR DISTRIBUTIONS [A+B+C] |
$ | 83 | $ | (28 | ) | $ | (95 | ) | $ | | $ | 62 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | These Cash Flow Estimates as of April 4, 2019 do not reflect the impact of the Eighteenth Plan Distribution on July 18, 2019 (see Note 8-Subsequent Event). |
Page 6
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Lehman Brothers OTC Derivatives Inc.
($ in millions) | As of 12/31/18 |
Less: Cash Activity 1/1/19 - 4/4/19 |
Changes | Transfers, Reclassifications, Adjustments |
As of 4/4/19 (a) |
|||||||||||||||||||
CASH AND INVESTMENTS |
||||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||||
Disputed unsecured claims |
$ | 0.0 | $ | (0.0 | ) | $ | | $ | | $ | | |||||||||||||
Distributions on Allowed Claims (not remitted) |
| | | | | |||||||||||||||||||
Secured, Admin, Priority Claims and Other |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - Reserves for Claims |
$ | 0.0 | $ | (0.0 | ) | $ | | $ | | $ | | |||||||||||||
Reserves for Operating Expenses |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Reserves for Incentive Fees |
| | | | | |||||||||||||||||||
Other Reserves |
0.3 | (0.0 | ) | | | 0.3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Cash & Investments - Restricted |
$ | 0.3 | $ | | $ | | $ | | $ | 0.3 | ||||||||||||||
Total Cash & Investments - Unrestricted |
$ | 0.3 | $ | | $ | | $ | | $ | 0.3 | ||||||||||||||
TOTAL CASH AND INVESTMENTS [A] |
$ | 0.6 | $ | | $ | | $ | | $ | 0.6 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CASH FLOW ESTIMATES |
||||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Residential Real Estate and Other |
| | | | | |||||||||||||||||||
Private Equity/Principal Investments |
| | | | | |||||||||||||||||||
Derivatives |
| | | | | |||||||||||||||||||
Other |
Note 2 | 0.0 | | (0 | ) | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 0 | $ | | $ | (0 | ) | $ | | $ | | |||||||||||||
Recoveries From Non-Controlled Affiliates |
Note 3 | |||||||||||||||||||||||
Europe |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Asia |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
Recoveries From Controlled Affiliates |
||||||||||||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
Note 4 | $ | (0.3 | ) | $ | | $ | | $ | (0.0 | ) | $ | (0.3 | ) | ||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) |
| | | | | |||||||||||||||||||
Investments in Affiliates |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Controlled Affiliates |
$ | (0.3 | ) | $ | | $ | | $ | (0.0 | ) | $ | (0.3 | ) | |||||||||||
Operating Expenses |
$ | | $ | 0.0 | $ | (0.0 | ) | $ | | $ | | |||||||||||||
Incentive Fees |
$ | (0.1 | ) | $ | | $ | (0.0 | ) | $ | | $ | (0.1 | ) | |||||||||||
Estimated Taxes Payable |
Note 7 | $ | | $ | | $ | | $ | | $ | | |||||||||||||
TOTAL CFO + OTHER RECEIPTS [B] |
$ | (0.4 | ) | $ | 0.0 | $ | (0.0 | ) | $ | (0.0 | ) | $ | (0.4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
OTHER ADJUSTMENTS |
||||||||||||||||||||||||
(Less): Cash held for the benefit of third parties |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
TOTAL OTHER ADJUSTMENTS [C] |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
ESTIMATED CASH AVAILABLE FOR DISTRIBUTIONS [A+B+C] |
$ | 0.3 | $ | 0.0 | $ | (0.0 | ) | $ | (0.0 | ) | $ | 0.2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 7
Quarterly Financial Report as of April 4, 2019 (Unaudited)
BNC Mortgage LLC
($ in millions) | As of 12/31/18 |
Less: Cash Activity 1/1/19 - 4/4/19 |
Changes | Transfers, Reclassifications, Adjustments |
As of 4/4/19 (a) |
|||||||||||||||||||
CASH AND INVESTMENTS |
||||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||||
Disputed unsecured claims |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Distributions on Allowed Claims (not remitted) |
0.7 | | | | 0.7 | |||||||||||||||||||
Secured, Admin, Priority Claims and Other |
1.4 | | | | 1.4 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - Reserves for Claims |
$ | 2.1 | $ | | $ | | $ | | $ | 2.1 | ||||||||||||||
Reserves for Operating Expenses |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Reserves for Incentive Fees |
| | | | | |||||||||||||||||||
Other Reserves |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Cash & Investments - Restricted |
$ | 2.1 | $ | | $ | | $ | | $ | 2.1 | ||||||||||||||
Total Cash & Investments - Unrestricted |
$ | 8.9 | $ | | $ | | $ | | $ | 8.9 | ||||||||||||||
TOTAL CASH AND INVESTMENTS [A] |
$ | 11.0 | $ | | $ | | $ | | $ | 11.0 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CASH FLOW ESTIMATES |
||||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Residential Real Estate and Other |
| | | | | |||||||||||||||||||
Private Equity/Principal Investments |
| | | | | |||||||||||||||||||
Derivatives |
| | | | | |||||||||||||||||||
Other |
Note 2 | 0.3 | | (0.3 | ) | | | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 0.3 | $ | | $ | (0.3 | ) | $ | | $ | | |||||||||||||
Recoveries From Non-Controlled Affiliates |
Note 3 | |||||||||||||||||||||||
Europe |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Asia |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Recoveries From Controlled Affiliates |
||||||||||||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
Note 4 | $ | | $ | | $ | | $ | | $ | | |||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) |
(1.6 | ) | | | | (1.6 | ) | |||||||||||||||||
Investments in Affiliates |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Controlled Affiliates |
$ | (1.6 | ) | $ | | $ | | $ | | $ | (1.6 | ) | ||||||||||||
Operating Expenses |
$ | (0.2 | ) | $ | 0.0 | $ | 0.1 | $ | | $ | (0.1 | ) | ||||||||||||
Incentive Fees |
$ | (0.0 | ) | $ | | $ | 0.0 | $ | | $ | (0.0 | ) | ||||||||||||
Estimated Taxes Payable |
Note 7 | $ | | $ | | $ | | $ | | $ | | |||||||||||||
TOTAL CFO + OTHER RECEIPTS [B] |
$ | (1.5 | ) | $ | 0.0 | $ | (0.2 | ) | $ | | $ | (1.7 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
OTHER ADJUSTMENTS |
||||||||||||||||||||||||
(Less): Cash held for the benefit of third parties |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
TOTAL OTHER ADJUSTMENTS [C] |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
ESTIMATED CASH AVAILABLE FOR DISTRIBUTIONS [A+B+C] |
$ | 9.5 | $ | 0.0 | $ | (0.2 | ) | $ | | $ | 9.3 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 8
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Debtor-Controlled Entities
($ in millions) | As of 12/31/18 |
Less: Cash Activity 1/1/19 - 4/4/19 |
Changes | Transfers, Reclassifications, Adjustments |
As of 4/4/19 (a) |
|||||||||||||||||||
CASH AND INVESTMENTS |
||||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||||
Disputed unsecured claims |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Distributions on Allowed Claims (not remitted) |
| | | | | |||||||||||||||||||
Secured, Admin, Priority Claims and Other |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Subtotal - Reserves for Claims |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
Reserves for Operating Expenses |
$ | 4 | $ | (1 | ) | $ | | $ | | $ | 3 | |||||||||||||
Reserves for Incentive Fees |
| | | | | |||||||||||||||||||
Other Reserves |
10 | 9 | | | 18 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Cash & Investments - Restricted |
$ | 14 | $ | 8 | $ | | $ | | $ | 22 | ||||||||||||||
Total Cash & Investments - Unrestricted |
$ | 68 | $ | (27 | ) | $ | | $ | | $ | 41 | |||||||||||||
TOTAL CASH AND INVESTMENTS [A] |
$ | 82 | $ | (19 | ) | $ | | $ | | $ | 63 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
CASH FLOW ESTIMATES |
||||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||
Commercial Real Estate |
$ | 12 | $ | (4 | ) | $ | (5 | ) | $ | | $ | 3 | ||||||||||||
Residential Real Estate and Other |
| (0 | ) | 0 | | | ||||||||||||||||||
Private Equity/Principal Investments |
55 | (2 | ) | (5 | ) | | 48 | |||||||||||||||||
Derivatives |
| | | | | |||||||||||||||||||
Other |
Note 2 | 10 | (2 | ) | 2 | | 10 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 76 | $ | (8 | ) | $ | (7 | ) | $ | | $ | 61 | ||||||||||||
Recoveries From Non-Controlled Affiliates |
Note 3 | |||||||||||||||||||||||
Europe (a) |
$ | 743 | $ | (37 | ) | $ | 101 | $ | 79 | $ | 886 | |||||||||||||
Asia |
0 | | (0 | ) | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 743 | $ | (37 | ) | $ | 101 | $ | 79 | $ | 886 | |||||||||||||
Recoveries From Controlled Affiliates |
||||||||||||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
Note 4 | $ | 0 | $ | | $ | | $ | | $ | 0 | |||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) |
64 | 5 | (8 | ) | | 62 | ||||||||||||||||||
Investments in Affiliates |
| | | | | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Controlled Affiliates |
$ | 64 | $ | 5 | $ | (8 | ) | $ | | $ | 62 | |||||||||||||
Operating Expenses |
$ | (4 | ) | $ | | $ | 1 | $ | | $ | (3 | ) | ||||||||||||
Incentive Fees |
$ |
|
$ |
|
$ |
|
$ |
|
$ | | ||||||||||||||
Estimated Taxes Payable |
Note 7 | $ | (2 | ) | $ | | $ | | $ | | $ | (2 | ) | |||||||||||
TOTAL CFO + OTHER RECEIPTS [B] |
$ | 877 | $ | (40 | ) | $ | 87 | $ | 79 | $ | 1,003 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
OTHER ADJUSTMENTS |
||||||||||||||||||||||||
Less: Cash held for the benefit of third parties |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
TOTAL OTHER ADJUSTMENTS [C] |
$ | | $ | | $ | | $ | | $ | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
ESTIMATED CASH AVAILABLE FOR DISTRIBUTIONS [A+B+C] |
$ | 959 | $ | (59 | ) | $ | 87 | $ | 79 | $ | 1,066 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(a) | The Company estimates that Debtor-Controlled Entities will collect approximately $0.8 billion, primarily from Lehman Brothers Holdings Intermediate 2 Ltd. |
Page 9
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Estimated Future Recoveries By Debtor
The following schedules show the estimated remaining recoveries as of April 4, 2019 for each of LBHI, LBSF and LCPI by claim class, based on the Estimated Cash Available for Distributions in the preceding tables. These estimated remaining recoveries do not include (a) potential recoveries from Affirmative Litigations, and (b) estimates for potential allowed amounts of disputed claims.
Lehman Brothers Holdings Inc. |
||||||||||||||||
Claims Eligible for Distributions (1) |
Estimated Recovery |
Estimated Cash Available for Distributions |
||||||||||||||
Class |
Designation |
$ | % | $ | ||||||||||||
3 | Senior Unsecured |
$ | 82,542 | 1.33 | % | $ | 1,099 | |||||||||
4A | Senior Affiliate Claims |
42,919 | 1.18 | % | 507 | |||||||||||
4B | Senior Affiliate Guarantee |
10,527 | 1.15 | % | 121 | |||||||||||
5 | Senior Third-Party Guarantee |
31,946 | 0.92 | % | 295 | |||||||||||
7 | General Unsecured |
5,242 | 1.24 | % | 65 | |||||||||||
8 | Derivative Affiliate / Affiliate Guarantee Claims |
451 | 1.08 | % | 5 | |||||||||||
9A | Third Party Guarantee Derivatives |
18,296 | 0.87 | % | 159 | |||||||||||
9B | Third Party Guarantee Derivatives RACERs |
| 0.53 | % | | |||||||||||
10A | Subordinated Class 10A Claims |
3,399 | | | ||||||||||||
10B | Subordinated Class 10B Claims |
10,330 | | | ||||||||||||
10C | Subordinated Class 10C Claims |
1,493 | | | ||||||||||||
|
|
|
|
|||||||||||||
Total |
$ | 207,147 | $ | 2,250 |
Lehman Brothers Special Financing Inc. |
||||||||||||||
Claims Eligible for Distributions (1) |
Estimated Recovery |
Estimated Cash Available for Distributions |
||||||||||||
Class |
Designation |
$ | % | $ | ||||||||||
4A | GUC not Designated Entities |
$ | 19,677 | 0.12 | % | $ | 24 | |||||||
4B | GUC Designated Entities |
1,948 | 0.06 | % | 1 | |||||||||
5A | Affiliate Claims of LBHI |
15,173 | 0.13 | % | 20 | |||||||||
5B | Affiliate Claims of Participating Subs |
522 | 0.10 | % | 1 | |||||||||
5C | Affiliate claims |
1,689 | 0.12 | % | 2 | |||||||||
|
|
|
|
|||||||||||
Total |
$ | 39,008 | $ | 47 |
Lehman Commercial Paper Inc. |
||||||||||||||
Claims Eligible for Distributions (1) |
Estimated Recovery |
Estimated Cash Available for Distributions |
||||||||||||
Class |
Designation |
$ | % | $ | ||||||||||
4A | GUC not Designated Entities |
$ | 1,539 | 0.23 | % | $ | 4 | |||||||
4B | GUC Designated Entities |
5,230 | 0.21 | % | 11 | |||||||||
5A | Affiliate Claims of LBHI |
13,738 | 0.27 | % | 36 | |||||||||
5B | Affiliate Claims of Participating Subs |
5 | 0.21 | % | 0 | |||||||||
5C | Affiliate claims |
4,822 | 0.23 | % | 11 | |||||||||
|
|
|
|
|||||||||||
Total |
$ | 25,334 | $ | 62 |
(1) | Estimated Recovery percentages are calculated based on recoveries of Allowed Claims eligible for distribution as reported on Exhibit D of the 17th Distribution Notice filed on March 28, 2019. For purposes of this illustrative calculation only: |
a. | Allowed claims exclude (i) claims satisfied in full through the combination of the primary obligor and guarantee distributions from LBHI, and (ii) previously Allowed Claims that have been withdrawn. |
b. | Disputed claims are assumed to be allowed at zero, and all cash reserves currently held on behalf of holders of disputed claims are assumed to be released for the benefit of all holders of Allowed Claims. |
c. | Allowed claims exclude Allowed Claims that each Debtor owns against itself. |
Page 10
Quarterly Financial Report as of April 4, 2019 (Unaudited)
III. Notes to the Cash Flow Estimates
Page 11
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 1 Basis of Presentation (continued)
Page 12
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 1 Basis of Presentation (continued)
Page 13
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 2 Other Receipts
The following table summarizes the main components of Other Receipts as of April 4, 2019:
Debtors | Debtor- | Total Debtors and Debtor- |
||||||||||||||||||||||||||
$ in millions |
LBHI | LCPI | LBSF | Other Debtors |
Total | Controlled Entities |
Controlled Entities |
|||||||||||||||||||||
Affiliate Claims (1) |
$ | 111 | $ | | $ | 6 | $ | | $ | 118 | $ | 0 | $ | 118 | ||||||||||||||
Other |
2 | | (0 | ) | 0 | 2 | 10 | 12 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Other Receipts |
$ | 113 | $ | | $ | 6 | $ | 0 | $ | 119 | $ | 11 | $ | 130 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Represents $118 million of claims against Non-Controlled Affiliates acquired through settlements with third parties valued at estimated recoveries, net of distributions. The largest components of Affiliate Claims, and the admitted claim amounts prior to distributions, are shown below: |
in millions |
Local Currency |
Admitted Claims in Local Currency |
||||||
Lehman Brothers Finance S.A. |
CHF | 937 | ||||||
Lehman Brothers Limited |
GBP | 66 |
Page 14
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 3 Due from/to Non-Controlled Affiliates
The following table presents, on an aggregate basis for Debtors and Debtor-Controlled Entities, admitted claims (including statutory interest to date), collections to date from Non-Controlled Affiliates, and aggregate estimated remaining recoveries (including statutory interest):
Estimated Recoveries (5) | ||||||||||||||||||||||||||||||||||||||||
$ in millions |
Local Currency |
Admitted Claims in Local Currency (3) |
Collections To Date in Local Currency (3) |
Admitted and Unsettled Filed Claims in USD (4) |
Collections To Date in USD (3) |
Net Receivables in USD |
LBHI | Other Debtors |
Debtor- Controlled Entities |
Total | ||||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Finance S.A. |
CHF | 10,153 | (1,540 | ) | 10,185 | (1,541 | ) | 8,644 | ||||||||||||||||||||||||||||||||
Lehman Brothers Treasury Co B.V. |
USD | 4,342 | (1,649 | ) | 4,342 | (1,649 | ) | 2,693 | ||||||||||||||||||||||||||||||||
Lehman Brothers Treasury Co B.V. (1) |
Various | | | 113 | | 113 | ||||||||||||||||||||||||||||||||||
LB UK RE Holdings Limited |
GBP | 1,188 | (705 | ) | 1,560 | (926 | ) | 634 | ||||||||||||||||||||||||||||||||
Lehman Brothers International (Europe) |
GBP | 869 | (869 | ) | 1,244 | (1,143 | ) | 101 | ||||||||||||||||||||||||||||||||
LB RE Financing No.3 Limited |
GBP | 353 | (28 | ) | 464 | (37 | ) | 427 | ||||||||||||||||||||||||||||||||
Thayer Properties Limited |
GBP | 172 | (42 | ) | 225 | (55 | ) | 170 | ||||||||||||||||||||||||||||||||
LB (PTG) Ltd |
GBP | 170 | (91 | ) | 223 | (119 | ) | 104 | ||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Plc |
GBP | 237 | (236 | ) | 311 | (310 | ) | 2 | ||||||||||||||||||||||||||||||||
LB (Luxembourg) Equity Finance S.A |
EUR | 96 | (96 | ) | 107 | (107 | ) | | ||||||||||||||||||||||||||||||||
Longmeade Limited |
GBP | 43 | (19 | ) | 56 | (25 | ) | 31 | ||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Intermediate 2 Ltd |
GBP | 871 | (871 | ) | 1,892 | (1,143 | ) | 749 | ||||||||||||||||||||||||||||||||
Other |
904 | (881 | ) | 24 | ||||||||||||||||||||||||||||||||||||
Recoveries of Prior Guarantee Distributions (2) |
| | | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Europe |
22,480 | (8,789 | ) | 13,691 | 927 | 16 | 886 | 1,829 | ||||||||||||||||||||||||||||||||
Asia |
||||||||||||||||||||||||||||||||||||||||
Sunrise Finance Co. Ltd |
JPY | 234,022 | (234,022 | ) | 2,099 | (2,099 | ) | | ||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Japan Inc. |
JPY | 178,617 | (178,617 | ) | 1,602 | (1,602 | ) | | ||||||||||||||||||||||||||||||||
LB Asia Capital Company |
HKD | 6,398 | (6,398 | ) | 815 | (815 | ) | | ||||||||||||||||||||||||||||||||
LB Asia Pacific (Singapore) PTE |
USD | 621 | (364 | ) | 621 | (364 | ) | 258 | ||||||||||||||||||||||||||||||||
LB Commercial Corp. Asia Limited |
HKD | 14,769 | (9,036 | ) | 1,882 | (1,151 | ) | 730 | ||||||||||||||||||||||||||||||||
LB Investments PTE Ltd |
USD | 543 | (289 | ) | 543 | (289 | ) | 254 | ||||||||||||||||||||||||||||||||
GKI Development Inc. |
KRW | 103,363 | (91,427 | ) | 91 | (80 | ) | 11 | ||||||||||||||||||||||||||||||||
Lehman Brothers Australia Ltd |
AUD | 111 | (66 | ) | 79 | (47 | ) | 32 | ||||||||||||||||||||||||||||||||
Sail Investor PTE Ltd |
USD | 63 | (60 | ) | 63 | (60 | ) | 3 | ||||||||||||||||||||||||||||||||
Other |
11,134 | (10,890 | ) | 244 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Asia |
18,929 | (17,398 | ) | 1,531 | 110 | 0 | 0 | 110 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total |
$ | 41,409 | $ | (26,187 | ) | $ | 15,222 | $ | 1,037 | $ | 16 | $ | 886 | $ | 1,939 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 15
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 3 Due from/to Non-Controlled Affiliates (continued)
(1) | Represents claims against LBT that were admitted in eight different currencies. |
(2) | The Company expects certain Allowed Guarantee Claims against LBHI to be deemed satisfied in full based on future distributions or other consideration received by a creditor on the corresponding primary claims by the underlying primary obligor. The Companys estimates include estimates for recoveries related to prior distributions on Allowed Guarantee Claims against LBHI that are or are expected to be satisfied in full. |
(3) | Admitted Claims in Local Currency, Collections to Date in Local Currency and Collections to Date in USD include (i) statutory interest received to date and (ii) less any distributions received on the claims prior to the assignments of the claims to LBHI and Debtor-Controlled Entities. |
(4) | Admitted and Unsettled Filed Claims in USD includes estimated recoveries on subordinated receivables and statutory interest. |
(5) | Refer to Note 1Basis of Presentation herein for further information on the estimated recoveries from Non-Controlled Affiliates. |
(6) | Other claims against Lehman Brothers Finance S.A., Bankhaus, LBT and LBIE, acquired through settlements with third parties are included in Other Assets (refer to Note 2 Other Receipts for additional information). |
Page 16
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 3 Due from/to Non-Controlled Affiliates (continued)
The table below presents the Due from/to Non-Controlled Affiliates balances as of April 4, 2019, and the related activity since the previously filed Quarterly Financial Report as of December 31, 2018:
Activity 1/1/19 - 4/4/19 | ||||||||||||||||||||||||
$ in millions | As of December 31, 2018 |
Cash Receipts | Cash Distributions |
Claim Assignments |
Other(1) | As of April 4, 2019 |
||||||||||||||||||
Due From Non-Controlled |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 15,831 | $ | (47 | ) | $ | | $ | (32 | ) | $ | (1,966 | ) | $ | 13,786 | |||||||||
Lehman Commercial Paper Inc. |
1 | (0 | ) | | | 0 | 1 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
643 | 0 | | | (0 | ) | 643 | |||||||||||||||||
Other Debtors |
(0 | ) | | | | 0 | (0 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
16,475 | (47 | ) | | (32 | ) | (1,966 | ) | 14,431 | |||||||||||||||
Debtor-Controlled |
767 | (37 | ) | | 32 | 29 | 791 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Due From Controlled |
$ | 17,243 | $ | (84 | ) | $ | | $ | | $ | (1,937 | ) | $ | 15,222 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Due To Non-Controlled (2) |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 31,952 | $ | | $ | (55 | ) | $ | | $ | (0 | ) | $ | 31,896 | ||||||||||
Lehman Commercial Paper Inc. |
441 | | (3 | ) | | (0 | ) | 438 | ||||||||||||||||
Lehman Brothers Special Financing Inc. |
774 | | (1 | ) | | (0 | ) | 773 | ||||||||||||||||
Other Debtors |
1 | | (0 | ) | | (0 | ) | 1 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
33,167 | | (59 | ) | | (0 | ) | 33,108 | ||||||||||||||||
Debtor-Controlled |
28 | | | | 0 | 28 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 33,195 | $ | | $ | (59 | ) | $ | | $ | (0 | ) | $ | 33,136 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Other primarily includes (i) the negative impact of movements in foreign exchange rates of $77 million calculated on the historical net receivable balances, and (ii) the write-off of the remaining balance of $1.9 billion following the receipt of final distributions from Lehman Brothers Holdings Japan Inc., Sunrise Finance Co., Ltd, and Lehman Brothers ODC 1 Limited. |
(2) | Due to Non-Controlled balances from Debtors are included in Liabilities Subject to Compromise herein. |
Page 17
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 3 Due from/to Non-Controlled Affiliates (continued)
The following table presents a summary of Due from/to Non-Controlled Affiliates balances for Debtors as of April 4, 2019:
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) |
$ | 2,163 | $ | (21,911 | ) | $ | 643 | $ | | $ | | $ | | $ | (0 | ) | $ | | $ | 2,806 | $ | (21,911 | ) | |||||||||||||||||
Lehman Brothers Finance S.A. |
8,644 | (674 | ) | | | | | | | 8,644 | (674 | ) | ||||||||||||||||||||||||||||
LB UK RE Holdings Limited |
628 | | | | | | | | 628 | | ||||||||||||||||||||||||||||||
Lehman Brothers (Luxembourg) S.A. |
(0 | ) | | | | | | | | (0 | ) | | ||||||||||||||||||||||||||||
Thayer Properties Limited |
170 | | | | | (0 | ) | | | 170 | (0 | ) | ||||||||||||||||||||||||||||
LB (PTG) Ltd |
104 | | | | | | | | 104 | | ||||||||||||||||||||||||||||||
LB (Luxembourg) Equity Finance S.A |
| | | | | | | | | | ||||||||||||||||||||||||||||||
Longmeade Limited |
7 | | | | | (23 | ) | | | 7 | (23 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Limited |
| (232 | ) | | (2 | ) | | (1 | ) | | (0 | ) | | (235 | ) | |||||||||||||||||||||||||
Lehman Brothers International (Europe) (2) |
100 | (655 | ) | | (520 | ) | | | | 0 | 100 | (1,174 | ) | |||||||||||||||||||||||||||
Eldon Street Holdings Limited |
| (20 | ) | | | | (0 | ) | | 0 | | (20 | ) | |||||||||||||||||||||||||||
LB RE Financing No.3 Limited |
427 | | | | | | | | 427 | | ||||||||||||||||||||||||||||||
LB Holdings Intermediate 2 Ltd |
| (196 | ) | | | | | | | | (196 | ) | ||||||||||||||||||||||||||||
Wood Street Investments Ltd |
| (176 | ) | | | | | | | | (176 | ) | ||||||||||||||||||||||||||||
Storm Funding Ltd |
0 | (113 | ) | | (3 | ) | | (32 | ) | | | 0 | (148 | ) | ||||||||||||||||||||||||||
Asia |
||||||||||||||||||||||||||||||||||||||||
Sunrise Finance Co. Ltd |
0 | | | | | | | | 0 | | ||||||||||||||||||||||||||||||
LB Commercial Corp. Asia Limited |
730 | | | | | (1 | ) | | | 730 | (1 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Holdings Japan Inc. |
(0 | ) | | | | | | | | (0 | ) | | ||||||||||||||||||||||||||||
LB Asia Pacific (Singapore) PTE |
258 | | | | | | | | 258 | | ||||||||||||||||||||||||||||||
LB Asia Capital Company |
| | 0 | | | | | | 0 | | ||||||||||||||||||||||||||||||
LB Investments PTE Ltd |
254 | | | | | | | | 254 | | ||||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||
Claims held by third parties (3) |
| (7,820 | ) | | (181 | ) | | (380 | ) | | (0 | ) | | (8,381 | ) | |||||||||||||||||||||||||
Other |
301 | (99 | ) | 0 | (67 | ) | | (2 | ) | | (1 | ) | 302 | (169 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
$ | 13,786 | $ | (31,896 | ) | $ | 643 | $ | (773 | ) | $ | | $ | (438 | ) | $ | (0 | ) | $ | (1 | ) | $ | 14,430 | $ | (33,108 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Totals may not foot due to rounding. |
|
(1) | LBT is included in the defined term Non-Controlled Affiliates, but LBHI has no direct or indirect equity interest in LBT. |
(2) | LBHI owns allowed claims against LBIE in the aggregate face amount of £644 million. |
Page 18
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 3 Due from/to Non-Controlled Affiliates (continued)
(3) | Claims held by third parties represent claims against Debtors, 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) | ||||||||||||||||
Original creditor |
LBHI | LBSF | LCPI | Total | ||||||||||||
Lehman Brothers Bankhaus A.G. |
$ | (4,753 | ) | $ | (102 | ) | $ | (253 | ) | $ | (5,108 | ) | ||||
Lehman Brothers Securities NV |
(488 | ) | (43 | ) | | (531 | ) | |||||||||
Storm Funding Ltd |
(505 | ) | | | (505 | ) | ||||||||||
Lehman Brothers U.K. Holdings (Delaware) |
(443 | ) | (443 | ) | ||||||||||||
LB Asia Capital Company |
(394 | ) | | | (394 | ) | ||||||||||
Eldon Street Holdings Limited |
(388 | ) | | | (388 | ) | ||||||||||
Lehman Re Limited |
(276 | ) | (15 | ) | (86 | ) | (376 | ) | ||||||||
LB Securities Asia Limited |
(125 | ) | | | (125 | ) | ||||||||||
Lehman Brothers Asia Limited |
(118 | ) | | | (118 | ) | ||||||||||
Lehman Brothers Futures Asia Limited |
(55 | ) | | | (55 | ) | ||||||||||
Lehman Brothers Asia Holdings Limited |
| (20 | ) | (40 | ) | (61 | ) | |||||||||
LB (Luxembourg) Equity Finance S.A. |
(85 | ) | (85 | ) | ||||||||||||
Lehman Brothers International (Europe) |
(53 | ) | (53 | ) | ||||||||||||
Other |
(139 | ) | | | (139 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Claims held by third parties |
$ | (7,820 | ) | $ | (181 | ) | $ | (379 | ) | $ | (8,380 | ) | ||||
|
|
|
|
|
|
|
|
Page 19
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 3 Due from/to Non-Controlled Affiliates (continued)
Page 20
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 4 Due from/to Debtors and Debtor-Controlled Entities
The table below presents the Due from/to Debtors and Debtor-Controlled Entities balances as of April 4, 2019, and the related activity since the previously filed Quarterly Financial Report as of December 31, 2018:
Activity 1/1/19 - 4/4/19 | ||||||||||||||||||||||||
$ in millions | As of December 31, 2018 |
Cash Receipts | Cash Distributions |
Claim Assignments |
Other | As of April 4, 2019 |
||||||||||||||||||
Due From Controlled |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 19,208 | (56 | ) | $ | | $ | | $ | (174 | ) | $ | 18,978 | |||||||||||
Lehman Commercial Paper Inc. |
6,691 | (6 | ) | | | 0 | 6,685 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
359 | (1 | ) | | | (0 | ) | 357 | ||||||||||||||||
Other Debtors |
0 | | | | | 0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
26,257 | (63 | ) | | | (174 | ) | 26,021 | ||||||||||||||||
Debtor-Controlled |
0 | (0 | ) | 0 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Due From Controlled |
$ | 26,257 | $ | (63 | ) | $ | $ | $ | (174 | ) | $ | 26,021 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Due To Controlled (1) |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 3,157 | $ | | (6 | ) | $ | | $ | (0 | ) | $ | 3,151 | |||||||||||
Lehman Commercial Paper Inc. |
2,945 | | (19 | ) | | $ | 0 | 2,926 | ||||||||||||||||
Lehman Brothers Special Financing Inc. |
10,047 | | (9 | ) | | $ | (0 | ) | 10,039 | |||||||||||||||
Other Debtors |
97 | | (1 | ) | | (97 | ) | 0 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
16,246 | | (34 | ) | | (97 | ) | 16,116 | ||||||||||||||||
Debtor-Controlled |
9,461 | (23 | ) | (77 | ) | 9,361 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 25,708 | $ | | $ | (57 | ) | $ | | $ | (174 | ) | $ | 25,477 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Due to Controlled from Debtors balances are reflected in Liabilities Subject to Compromise on the April 4, 2019 Balance Sheets. |
Page 21
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 4 Due from/to Debtors and Debtor-Controlled Entities (continued)
The following table presents a summary of Due from/to Debtors and Debtor-Controlled Entities balances for Debtors as of April 4, 2019:
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 |
$ | | $ | | $ | 170 | $ | (10,039 | ) | $ | 2,981 | $ | (2,748 | ) | $ | 0 | $ | (0 | ) | $ | 3,151 | $ | (12,786) | |||||||||||||||||
LB Special Financing Inc |
10,039 | (170 | ) | | | 0 | (179 | ) | 0 | 0 | 10,039 | (348 | ) | |||||||||||||||||||||||||||
Lehman Commercial Paper Inc |
2,748 | (2,981 | ) | 179 | (0 | ) | | | | 0 | 2,926 | (2,981 | ) | |||||||||||||||||||||||||||
Structured Asset Securities Corp |
(0 | ) | | | | | | | | (0 | ) | | ||||||||||||||||||||||||||||
LB Commodity Services Inc |
0 | (0 | ) | | (0 | ) | | (0 | ) | | (0 | ) | 0 | (0 | ) | |||||||||||||||||||||||||
RACERS Claims (1) |
544 | | | | | | | | 544 | | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Debtors |
$ | 13,331 | $ | (3,151 | ) | $ | 348 | $ | (10,039 | ) | $ | 2,981 | $ | (2,926 | ) | $ | 0 | $ | (0 | ) | $ | 16,660 | $ | (16,116 | ) | |||||||||||||||
Lehman Ali Inc: |
||||||||||||||||||||||||||||||||||||||||
Lehman Ali Inc (PCO) |
| | | | 1,934 | | 0 | | 1,934 | | ||||||||||||||||||||||||||||||
LB I Group Inc: |
||||||||||||||||||||||||||||||||||||||||
LB I Group Inc (PCO) |
1,523 | | 6 | | 43 | | (0 | ) | | 1,572 | | |||||||||||||||||||||||||||||
LB Offshore Partners Ltd |
339 | | | | 1 | | | | 340 | | ||||||||||||||||||||||||||||||
DL Mortgage Corp |
| | 0 | | 747 | | | | 748 | | ||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc: |
||||||||||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc (PCO) |
785 | 0 | | | | | | 0 | 785 | 0 | ||||||||||||||||||||||||||||||
Other: |
||||||||||||||||||||||||||||||||||||||||
Pami Ali LLC |
1,754 | (0 | ) | 1 | | 980 | | | | 2,734 | (0 | ) | ||||||||||||||||||||||||||||
Luxembourg Finance S.a.r.l. |
0 | | | | | | | | 0 | | ||||||||||||||||||||||||||||||
Real Estate Private Equity Inc |
625 | | | | | | | | 625 | | ||||||||||||||||||||||||||||||
SMF No.1 Limited |
126 | | | | | | | | 126 | | ||||||||||||||||||||||||||||||
Repe LBREP LP, LLC |
185 | | | | | | | | 185 | | ||||||||||||||||||||||||||||||
Lehman Brothers Global Services Inc. |
48 | | | | | | | | 48 | | ||||||||||||||||||||||||||||||
Other |
262 | 0 | 1 | | | | | (0 | ) | 264 | 0 | |||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total Debtor-Controlled Entities |
$ | 5,648 | $ | 0 | $ | 9 | $ | | $ | 3,704 | $ | | $ | 0 | $ | 0 | $ | 9,361 | $ | 0 | ||||||||||||||||||||
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Total |
$ | 18,978 | $ | (3,151 | ) | $ | 357 | $ | (10,039 | ) | $ | 6,685 | $ | (2,926 | ) | $ | 0 | $ | (0 | ) | $ | 26,021 | $ | (16,116 | ) | |||||||||||||||
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PCO parent company only
(1) | Refer to Section IV.I.b of the Disclosure Statement for further information on the RACERS Claims. |
Page 22
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 4 Due from/to Debtors and Debtor-Controlled Entities (continued)
The following table presents a summary of Due from/to Affiliates balances for Debtor-Controlled Entities as of April 4, 2019:
Lehman ALI Inc. | LB I Group Inc. | 314 Commonwealth Ave. Inc. |
Other Debtor- Controlled Entities |
|||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | | $ | | $ | | $ | (1,863 | ) | $ | | $ | (785 | ) | $ | | $ | (2,843 | ) | |||||||||||||
Lehman Commercial Paper Inc. |
| (1,934 | ) | | (791 | ) | | | | (980 | ) | |||||||||||||||||||||
Lehman Brothers Special Financing Inc. |
| | | (7 | ) | | | | (1 | ) | ||||||||||||||||||||||
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Total Debtors |
$ | | $ | (1,934 | ) | $ | | $ | (2,660 | ) | $ | | $ | (785 | ) | $ | | $ | (3,824 | ) | ||||||||||||
Debtor-Controlled: |
||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc |
$ | 45 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Lehman Ali Inc (1) |
| | | | | (45 | ) | 174 | | |||||||||||||||||||||||
Real Estate Private Equity Inc (1) |
| | | | | | 217 | (2 | ) | |||||||||||||||||||||||
LB I Group Inc. |
| | | | | | | (319 | ) | |||||||||||||||||||||||
Pami ALI LLC |
| (174 | ) | 292 | | | | 1 | (217 | ) | ||||||||||||||||||||||
Other |
| (0 | ) | 28 | (25 | ) | (0 | ) | 0 | 2 | (135 | ) | ||||||||||||||||||||
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Total Debtor-Controlled Entities |
$ | 45 | $ | (174 | ) | $ | 319 | $ | (25 | ) | $ | (0 | ) | $ | (45 | ) | $ | 394 | $ | (673 | ) | |||||||||||
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Total |
$ | 45 | $ | (2,108 | ) | $ | 319 | $ | (2,685 | ) | $ | (0 | ) | $ | (830 | ) | $ | 394 | $ | (4,497 | ) | |||||||||||
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Non-Controlled Affiliates: (2) |
||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Intermediate 2 Ltd |
$ | | $ | | $ | | $ | | $ | | $ | | $ | 749 | $ | | ||||||||||||||||
LB UK RE Holdings Limited |
| | | | 6 | | | | ||||||||||||||||||||||||
Other |
0 | | 0 | (1 | ) | | | 35 | (27 | ) | ||||||||||||||||||||||
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Total |
$ | 0 | $ | | $ | 0 | $ | (1 | ) | $ | 6 | $ | | $ | 784 | $ | (27 | ) | ||||||||||||||
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(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 23
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 5 Disputed Claims
The table below presents the remaining Disputed Claims by Debtor, by Class and by Primary Obligor as of April 4, 2019:
$ in millions | ||||||||||||||||||||||||
Debtor/Class |
Total Number of Filed Claims |
Number of Unliquidated Claims |
Total Filed Amount |
Estimate of Disputed Claims for Reserve Purposes (2) |
Total Cash Reserves for Disputed Claims (3) |
|||||||||||||||||||
Lehman Brothers Holdings Inc. | ||||||||||||||||||||||||
Administrative |
3 | 3 | $ | | $ | | $ | | ||||||||||||||||
1 | Priority Non-Tax |
1 | 1 | | | | ||||||||||||||||||
2 | Secured |
1 | 1 | 6 | | | ||||||||||||||||||
4A | Senior Affiliate Claims |
1 | 1 | | | | ||||||||||||||||||
5 | Senior Third-Party Guarantee (1) |
2 | | 8 | 5 | 0 | ||||||||||||||||||
LB UK Capital Funding II |
1 | | 0 | 0 | 0 | |||||||||||||||||||
LBIE |
1 | | 8 | 5 | 0 | |||||||||||||||||||
9A | Third Party Guarantee other than of the RACERS Trusts (1) |
102 | 26 | 1,388 | 1,124 | 52 | ||||||||||||||||||
LBF |
2 | 1 | 62 | 62 | 5 | |||||||||||||||||||
LBIE |
65 | 1 | 1,318 | 1,053 | 46 | |||||||||||||||||||
LBSF |
35 | 24 | 9 | 9 | 1 | |||||||||||||||||||
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Total | 110 | 32 | $ | 1,403 | $ | 1,129 | $ | 52 | ||||||||||||||||
Lehman Brothers Special Financing Inc. | ||||||||||||||||||||||||
Administrative | 2 | 2 | $ | | $ | | $ | | ||||||||||||||||
4A | General Unsecured Claims other than those of Designated Entities | 35 | 11 | 3 | 3 | 1 | ||||||||||||||||||
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Total |
37 | 13 | $ | 3 | $ | 3 | $ | 1 | ||||||||||||||||
BNC Mortgage LLC (4) | ||||||||||||||||||||||||
3 | General Unsecured Claims | 8 | 2 | $ | 27 | $ | 27 | $ | | |||||||||||||||
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Total | 8 | 2 | $ | 27 | $ | 27 | $ | |
(1) | The Disputed Claims relate to asserted guarantee obligations related to the primary obligor. |
(2) | Certain Claims have been estimated at less than filed amounts, for reserve purposes only, as agreed through stipulation or settlement agreement or pursuant to Court order. Unless otherwise agreed to or ordered by the Court, there is no reserve for unliquidated Claims. |
(3) | In addition to cash, assets are being maintained as reserves for certain claims pursuant to agreements with creditors and/or Bankruptcy Court order. |
(4) | Significant unliquidated claims against BNC (Claim No. 31036 and 33107) remain. If liquidated and allowed, those claims could have a material impact on the recoveries to BNC claimants and could result in creditors receiving significantly less than a 100% recovery on their claims. |
Page 24
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Note 6 Legal Proceedings
The Company is involved in or will be impacted by a number of judicial, regulatory and mediation proceedings concerning matters arising in connection with the bankruptcy proceedings and various other matters, including the proceedings listed below. The Company is unable at this time to determine the financial impact such proceedings may have on any potential recoveries or liabilities. As more information becomes available, the Company may record revisions, which may be material, in future Quarterly Financial Reports. (See Note 1-Basis of Presentation-Litigation for further discussion on the impact of these litigations on the cash flow estimates.)
Legal Summary
Affirmative litigations:
Counterparty | Debtor(s) | Commenced | Court | Court Reference | Most Recent Disclosure | |||||
Mortgage Sellers | LBHI | Various | Various | Various | (a) | |||||
Bank of America National Association et al. (SPV Avoidance Actions) | LBSF | September 2010 | Bankruptcy Court | 10-03547 (SCC) | June 30, 2018 Balance Sheets - Docket No. 58846 | |||||
Ballyrock ABS CDO 2007-1 Limited Wells Fargo Bank N.A. (Ballyrock Litigation) | LBSF | February 2009 | Bankruptcy Court | 09-01032 (SCC) | March 31, 2012 Balance Sheets - Docket No. 29731 |
Other litigations:
Counterparty | Controlled Entities Party to Litigation |
Debtor(s) Potentially Impacted by Litigation |
Court | Most Recent Disclosure | ||||
ECAPs | LBHI SLP3 | LBHI | UK Court Bankruptcy Court | (b) | ||||
Guarantee Claims For Which LBIE Is The Primary Obligor |
LBHI | LBHI | Bankruptcy Court | (c) | ||||
LBIE Other | None | LBHI | Various | (d) | ||||
LBF Guarantee - Tschira | None | LBHI | Swiss Court UK Court | (e) | ||||
LBF Guarantee - Enasarco | None | LBHI | Swiss Court | April 5, 2018 Balance Sheets - Docket No. 58442 | ||||
Guarantee Clawbacks | None | LBHI | Bankruptcy Court | (f) |
Page 25
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Page 26
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Page 27
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Page 28
Quarterly Financial Report as of April 4, 2019 (Unaudited)
Page 29
IV. Balance Sheets
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of April 4, 2019
(Unaudited)
($ in millions) |
Lehman Brothers Holdings Inc. 08-13555 |
Lehman Brothers Special Financing Inc. 08-13888 |
Lehman Commercial Paper Inc. 08-13900 |
BNC Mortgage LLC 09-10137 |
Lehman Brothers OTC Derivatives Inc. 08-13893 |
Other Debtors |
Total Debtor Entities (1) |
Total Debtor- Controlled Entities (2) |
Total Company |
|||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 82 | $ | 3 | $ | 1 | $ | 9 | $ | 0 | $ | 0 | $ | 95 | $ | 41 | $ | 136 | ||||||||||||||||||
Cash and short-term investments pledged or restricted |
185 | 17 | 4 | 2 | 0 | | 209 | 22 | 230 | |||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
| | 1 | | | | 1 | 3 | 4 | |||||||||||||||||||||||||||
Residential Real Estate and Other |
13 | | 2 | | | | 15 | 0 | 15 | |||||||||||||||||||||||||||
Principal investments |
1 | | | | | | 1 | 48 | 49 | |||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| 16 | | | | | 16 | | 16 | |||||||||||||||||||||||||||
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Total Financial instruments and other inventory positions |
13 | 16 | 3 | | | | 33 | 51 | 84 | |||||||||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
| | | | | | | | | |||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
216 | 6 | 0 | | | | 223 | 83 | 306 | |||||||||||||||||||||||||||
Investments in Affiliates |
(27,845 | ) | 0 | 3 | | | | (27,842 | ) | (19,416 | ) | (47,258 | ) | |||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
18,978 | 357 | 6,685 | | | 0 | 26,020 | 0 | 26,020 | |||||||||||||||||||||||||||
Non-Controlled Affiliates |
13,786 | 643 | 1 | | | | 14,431 | 791 | 15,222 | |||||||||||||||||||||||||||
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|||||||||||||||||||
Total Due from Affiliates |
32,765 | 1,001 | 6,686 | | | 0 | 40,451 | 791 | 41,242 | |||||||||||||||||||||||||||
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|||||||||||||||||||
Total Assets |
$ | 5,416 | $ | 1,043 | $ | 6,697 | $ | 11 | $ | 1 | $ | 0 | $ | 13,168 | $ | (18,428 | ) | $ | (5,260 | ) | ||||||||||||||||
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|||||||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 96 | $ | 7 | $ | 1 | $ | 2 | $ | 0 | $ | | $ | 107 | $ | 25 | $ | 132 | ||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
$ | 0 | | | | | | 0 | 9,361 | 9,361 | ||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | | 28 | 28 | |||||||||||||||||||||||||||
Total Due to Affiliates |
0 | | | | | | 0 | 9,390 | 9,390 | |||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
| | | | | | | | | |||||||||||||||||||||||||||
Taxes Payable |
41 | | 5 | | | 0 | 46 | 2 | 48 | |||||||||||||||||||||||||||
Liabilities Subject to Compromise |
138,268 | 22,722 | 4,428 | 3 | (0 | ) | (0 | ) | 165,421 | (0 | ) | 165,421 | ||||||||||||||||||||||||
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|||||||||||||||||||
Total Liabilities |
138,406 | 22,728 | 4,434 | 5 | 0 | | 165,574 | 9,417 | 174,990 | |||||||||||||||||||||||||||
Stockholders Equity |
(132,990 | ) | (21,685 | ) | 2,263 | 6 | 0 | 0 | (152,406 | ) | (27,845 | ) | (180,250 | ) | ||||||||||||||||||||||
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|||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | 5,416 | $ | 1,043 | $ | 6,697 | $ | 11 | $ | 1 | $ | 0 | $ | 13,168 | $ | (18,428 | ) | $ | (5,260 | ) | ||||||||||||||||
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Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) | Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries. |
(2) | Certain Debtor-Controlled Entities Balance Sheets are presented on page 31. |
Page 30
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of April 4, 2019 (Debtor-Controlled Entities)
(Unaudited)
($ in millions) | Lehman ALI |
Property Asset Inc. (3) |
LB I Group |
Lehman Brothers Bancorp Inc. (3) |
PAMI Holdings LLC |
314 wealth (3) |
PAMI ALI |
Lux Finance Sarl |
Other Debtor- |
Debtor - Controlled Group Elims (1) |
Total Debtor- |
|||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 1 | $ | 1 | $ | (0 | ) | $ | 5 | $ | 0 | $ | 0 | $ | 3 | $ | 1 | $ | 31 | $ | | $ | 41 | |||||||||||||||||||||
Cash and short-term investments pledged or restricted |
(0 | ) | 0 | 11 | | | | 0 | | 11 | | 22 | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
| 2 | | | | | 0 | | 0 | | 3 | |||||||||||||||||||||||||||||||||
Residential Real Estate and Other |
| 0 | 0 | | | | | | | | 0 | |||||||||||||||||||||||||||||||||
Principal investments |
0 | | 13 | | | | 1 | | 35 | | 48 | |||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| | | | | | | | | | | |||||||||||||||||||||||||||||||||
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Total Financial instruments and other inventory positions |
0 | 2 | 13 | | | | 1 | | 35 | | 51 | |||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
0 | 0 | 1 | 69 | 0 | 0 | 0 | | 26 | (14 | ) | 83 | ||||||||||||||||||||||||||||||||
Investments in Affiliates |
(25,200 | ) | | | 6 | | 0 | | | (0 | ) | 5,779 | (19,416 | ) | ||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
45 | | 319 | | | (0 | ) | 391 | | 3 | (758 | ) | 0 | |||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
0 | | 0 | | 1 | 6 | 23 | | 760 | | 791 | |||||||||||||||||||||||||||||||||
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Total Due from Affiliates |
45 | | 319 | | 1 | 6 | 414 | | 763 | (758 | ) | 791 | ||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||
Total Assets |
$ | (25,155 | ) | $ | 3 | $ | 344 | $ | 79 | $ | 2 | $ | 7 | $ | 419 | $ | 1 | $ | 866 | $ | 5,007 | $ | (18,428 | ) | ||||||||||||||||||||
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|||||||||||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 1 | $ | 0 | $ | 6 | $ | 0 | $ | 0 $ | 0 | $ | 5 | $ | 0 | $ | 225 | $ | (212 | ) | $ | 25 | ||||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
2,108 | | 2,685 | | | 830 | 3,028 | | 1,469 | (758 | ) | 9,361 | ||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | 1 | | | | | | 27 | | 28 | |||||||||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||||
Total Due to Affiliates |
2,108 | | 2,686 | | | 830 | 3,028 | | 1,496 | (758 | ) | 9,390 | ||||||||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
| | | | | | | | | | | |||||||||||||||||||||||||||||||||
Taxes Payable |
| | 2 | | | | | | | | 2 | |||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
| | | | | | | | (0 | ) | | (0 | ) | |||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||
Total Liabilities |
2,109 | 0 | 2,695 | 0 | 0 | 830 | 3,033 | 0 | 1,721 | (971 | ) | 9,417 | ||||||||||||||||||||||||||||||||
Stockholders Equity |
(27,263 | ) | 3 | (2,350 | ) | 79 | 2 | (823 | ) | (2,614 | ) | 1 | (855 | ) | 5,977 | (27,845 | ) | |||||||||||||||||||||||||||
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|||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | (25,155 | ) | $ | 3 | $ | 344 | $ | 79 | $ | 2 | $ | 7 | $ | 419 | $ | 1 | $ | 866 | $ | 5,007 | $ | (18,428 | ) | ||||||||||||||||||||
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|||||||||||||||||||||||
|
|
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 (i) separately reported wholly-owned subsidiaries that are Debtor entities (e.g. LCPI and LBSF), and (ii) separately reported Debtor-Controlled Entities and their direct subsidiaries (e.g. 314 Commonwealth Ave Inc., Property Asset Management Inc. and Pami ALI LLC). |
(3) | Entities are reflected on a consolidated basis. |
Page 31