Lehman Administrators Announce £650M Agreement Which Will Benefit Creditors
NEW YORK -- October 1, 2013
The joint administrators of LB Holdings Intermediate 2 Limited (in
Administration) (LBHI2) today announced that LBHI2 has entered into a
commitment letter and head of terms (the Transaction) with Elliott Management
Corporation and certain of its affiliates (Elliott), King Street Capital
Management, L.P. and certain of its affiliates (King Street) and Lehman
Brothers Holdings Inc. (LBHI) in connection with the claims of LBHI2 in the
estate of Lehman Brothers International (Europe) (in administration) (LBIE).
The Transaction provides for an initial payment to LBHI2 of approximately
£650,000,000 along with the right to receive future contingent sums. In turn
Elliott and King Street, alongside LBHI2 will acquire rights with respect to
all of LBHI2's claims against LBIE.
The Transaction also provides for LBHI2 to share in certain claims against the
LBIE estate held by Elliott and King Street.
Commenting on the announcement Derek Howell, joint administrator of LBHI2
"I believe that the Transaction represents an excellent outcome for the
creditors of LBHI2. Working closely with Elliott and King Street, I am hopeful
that it will lead to an early resolution of the outstanding issues between
LBHI2, Lehman Brothers Limited (in Administration) (LBL) and LBIE which, in
turn, may serve to expedite the final resolution of all three
LBHI2 is the holder of the subordinated debt in LBIE. LBHI is the ultimate
shareholder and indirect significant majority creditor of LBHI2. Elliott and
King Street are significant creditors of LBIE.
For Lehman Brothers Holdings Inc.
David Jetuah, 02072121812
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