Welcome!

Microsoft Cloud Authors: Pat Romanski, Andreas Grabner, Nick Basinger, Kevin Benedict, Liz McMillan

News Feed Item

Lehman Brothers Inc. and Lehman Brothers International (Europe) Announce Agreement in Principle

NEW YORK and LONDON, Oct. 5, 2012 /PRNewswire/ -- James W. Giddens, Trustee for the liquidation of Lehman Brothers Inc. ("LBI") under the Securities Investor Protection Act (SIPA), and Tony Lomas, the Joint Administrator of Lehman Brothers International (Europe) ("LBIE"), announced today that an agreement in principle has been reached to resolve all claims among their respective entities totaling $38 billion.

The agreement is subject to documentation, approval by the U.S. Bankruptcy Judge, the Honorable James M. Peck, and an order of the English High Court.  If approved, the agreement will allow the Trustee and the Joint Administrators to proceed with plans to allocate and distribute assets to customers and creditors.

"This is a critical milestone for customers because, if approved by the Court, the agreement sets the stage for distributions that will provide for 100 percent recovery of customer property," said Trustee Giddens. "The agreement resolves tens of billions in claims from LBI's largest single customer claimant and will allow for customer and creditor distributions much sooner than if LBIE's claims involving hundreds of thousands of transactions were litigated.  We will now work toward the Court approvals necessary for distributions on top of the more than $90 billion already made to customers."

"The resolution of LBIE's claims relating to LBI will allow us to move the case forward materially, enabling us to focus on the client side allocation of over $7 billion of client assets," said Joint Administrator Lomas. "Our immediate priority is to finalise the methodology for distribution of our Omnibus claim recoveries to clients."

"Achieving      a final resolution with LBI will be the most significant step in LBIE's administration to date, and having this coincide with our first interim distribution will enable us to plan a much earlier second distribution than would otherwise be the case," added Lomas.

Terms of Agreement in Principle

  • LBIE's Omnibus customer claim against LBI of $15.1 billion will be allowed in an amount of approximately $7.5 billion (valued as of 19 September 2008) in securities and cash.  This claim will be augmented by post-filing income estimated to be approximately $600 million. 
  • LBIE's House customer claim against LBI of $8.9 billion will be replaced by an allowed cash net equity customer claim of $500 million.
  • LBI will stipulate to an LBIE general property claim in the amount of $4.0 billion, and LBI's unsecured claim against LBIE of $13.8 billion will be eliminated.
  • LBI's Client Money claim against LBIE will be assigned to LBIE's nominee.
  • The parties have agreed to suspend scheduled litigation activity until mid-December 2012 to allow work to proceed in finalizing of this agreement.
  • The agreement limits the amount of the maximum recoveries that each would make into the other's estate from the claims asserted so that planning for distributions in their respective estates can continue.

If a final agreement between the parties can be reached before December 15, 2012, a U.S. Bankruptcy Court hearing seeking approval of the agreement can be anticipated in the first quarter of 2013. 

SOURCE Office of the Trustee for the liquidation of Lehman Brothers Inc.; Office of the Joint Administrator of Lehman Brothers International (Europe)

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
@CloudEXPO and @ExpoDX, two of the most influential technology events in the world, have hosted hundreds of sponsors and exhibitors since our launch 10 years ago. @CloudEXPO and @ExpoDX New York and Silicon Valley provide a full year of face-to-face marketing opportunities for your company. Each sponsorship and exhibit package comes with pre and post-show marketing programs. By sponsoring and exhibiting in New York and Silicon Valley, you reach a full complement of decision makers and buyers in ...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
LogRocket helps product teams develop better experiences for users by recording videos of user sessions with logs and network data. It identifies UX problems and reveals the root cause of every bug. LogRocket presents impactful errors on a website, and how to reproduce it. With LogRocket, users can replay problems.
Data Theorem is a leading provider of modern application security. Its core mission is to analyze and secure any modern application anytime, anywhere. The Data Theorem Analyzer Engine continuously scans APIs and mobile applications in search of security flaws and data privacy gaps. Data Theorem products help organizations build safer applications that maximize data security and brand protection. The company has detected more than 300 million application eavesdropping incidents and currently secu...