Extended Lien Application - 06/06/2011

Certain of the agreements between LBIE and its Affiliates which may assert or have ownership claims to securities held by LBIE (“Ownership Affiliates”) contain provisions which confer upon LBIE lien and other security entitlements (“Security Provisions”) in relation to the assets in order to recover debts owed by Ownership Affiliates to LBIE or to other Affiliates (“Creditor Affiliates”).  A list of the Ownership Affiliates is available here (updated as of 6/6/11). Some Creditor Affiliates have contended that LBIE owes duties to them to exercise, on their behalf and at their request, rights conferred upon LBIE by the Security Provisions.  Such claims by Creditor Affiliates are referred to as “extended lien claims”.  The Administrators propose to make copies of the agreements referred to above available to Creditor Affiliates.  The protocol for this provision of information is available here (updated as of 6/6/2011).

Before the Joint Administrators are able to return any assets affected by extended lien claims to Ownership Affiliates, the Joint Administrators wish to seek to resolve the existence and merits of extended lien claims.  The Joint Administrators have made an Application to the English High Court for directions concerning the existence and merits of extended lien claims.  A copy of the Application Notice is available here. The hearing is listed to take place on 15 July 2011. If you would like a copy of the main witness statement accompanying the Application, the supplemental witness statement dated 1 July 2011, or the draft Order setting out the directions which the Administrators intend to seek at the hearing on 15 July, or you wish to participate in the Application or require any other information, please send an email to extendedlienclaims@lbia-eu.com. For logistical reasons, all future updates relevant to the Application will be published on this website only. We therefore suggest that you consult this website on a regular basis.