The Joint Administrators are pleased to announce the signing of a settlement deed with Lehman Brothers Finance AG (“LBF”) which settles substantially all the financial arrangements between the parties. The relationship between LBIE and LBF is one of the most complex and material affiliate relationships covering securities settlement and custody, secured financing, OTC / Exchange Traded derivatives and Prime Broker. The agreement is subject to the finalisation of Swiss approval processes applicable to both LBIE (in so far as the settlement impacts its ancillary Swiss insolvency proceeding) and LBF.
Tony Lomas, Joint Administrator, commented "This settlement has been a long time in the making but we are pleased that it is now agreed between us and subject only to Swiss regulatory and creditor consents. The settlement has considerable benefits for LBIE as we continue to firm up plans for the 2013 distributions to our unsecured creditors and client money claimants."
The agreement, once approved, will secure a settlement at the levels modelled for LBF in the High Case Indicative Financial Outcome as set out in the Joint Administrators’ Eighth Progress Report to 14 September 2012 and eliminate the downside sensitivities in the Low Case outcome.
Outline Terms of Agreement:
Further details of the settlement will be posted as part of the above noted approval process.
Should you have any queries regarding the content of this update please contact your existing LBIE contact or the Communications and Counterparty Management team at generalqueries@lbia-eu.com.
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