Update on LBI Settlement -5 February 2013

Creditors and Omnibus Claimants may have noticed that the LBI Trustee on Thursday 31 January 2013 filed a further motion concerning the allocation of property within his estate. The Trustee sets out therein his own reasons for filing the motion at this time.

LBIE is reviewing the contents of the motion and considering what position it will adopt in response to it in due course. Should definitive terms be reached with LBIE and LBI as presently contemplated and pursuant to the non binding heads of terms then this will require the Trustee to revise his allocation motion.

Significant progress has been made in working with LBI to finalise the remaining settlement terms since they were announced, in principle, on 5 October 2012. LBIE believes that in this regard many of the final and more significant obstacles have been cleared in the last week and a fuller definitive announcement should be expected in the next two weeks.

Separately, the Trustee continues to maintain a series of on going litigation activity on the determination of certain disputed claims and LBIE filed a brief in respect of one of these 1 February 2013 in the absence of a concluded settlement.

Should you have any queries regarding this update, please contact the LBIE Communications and Counterparty Management team at generalqueries@lbia-eu.com.