Client Assets Update - Post Bar Date Frequently Asked Questions - 25/03/10

This update concerns the frequently asked questions and answers ("Q&As") that have been developed as a result of the Bar Date passing.  For further information on the Bar Date please view the 22 March Post Bar Date Client Asset update here. 

The Q&As set out below have been created to assist potential trust asset creditors regarding LBIE's process for claim reconciliation and distribution of assets.  The Q&As are intended as general guidance only and should not be regarded as advice in respect of the Claims Resolution Agreement ("CRA") or otherwise. This document is not a legal document and is not intended to create legal relations or to form the basis of any contract or agreement.

Trust Asset Q&As

1.What happens now that the Bar Date has passed and claims have been submitted?  When will someone contact me about my claim?

The Administration has now entered into a process whereby LBIE will work with claimants to reconcile claims and return trust assets.  This process is complex and has many steps, the first of which is agreeing your asset claim in advance of LBIE issuing a claim notice ("Notice").  The Notice will provide details of the trust asset claim, on an individual stock line basis, which LBIE believes the claimant has for that stock line.  In general,

1. If you have not disputed any of your stock lines on your UPBS statements, it is envisioned that the next formal communication from the Joint Administrators will be the issuance of a Notice with respect to one or more of your trust assets;
2. If you have submitted differences from your UPBS statements then LBIE has begun an investigatory process and will contact you in due course to try to reach a resolution before a Notice is issued on a stock line;
3. Please note that the reconciliation process is on a stock line basis. LBIE needs to reconcile the information from all holders of each stock line before a Notice is able be issued.  Stock lines that have many holders may take longer to reconcile. 

On receipt of a Notice, a trust asset claimant has the ability to discuss any differences with LBIE.  LBIE's Counterparty Communications and Management team is available to respond to queries which may be sent to generalqueries@lbia-eu.com.

Following your agreement and other claimants' agreements to a particular stock line, LBIE can move towards distribution of that asset.  It is important to note that a stock line will not be released to a claimant if there is indebtedness to LBIE or any other Lehman Brothers entity by such claimant.

2. What happens if I did not submit my claim by the Bar Date?

In assessing a trust asset claimant's entitlement to assets, LBIE will take into account information from LBIE's books and records as well as other information which it has received from a claimant over the course of the administration.  Therefore, trust asset claimants who fail to submit asset claims may lose their ability to share in any distributions of relevant assets if LBIE has no other information on its books and records.  If you have yet to submit a claim, please contact generalqueries@lbia-eu.com to receive further instructions.

3.If I did not sign up to the claim resolution agreement ("CRA"), how will my claim be processed?

LBIE is reviewing all claims that have been submitted (by both CRA and Non CRA trust asset claimants).  If your claim is not governed by the CRA, the process will follow industry standards for insolvency. We anticipate that the process will be very similar to that of the CRA, but there will be bilateral negotiations in key areas and hence it may take longer to achieve resolution.

4.I want to make a change and/or submit further information to my submission but the Trust Asset section of my statement on the Portal is locked.  How can I make changes or submit further information?

The trust asset section of the UPBS on the Portal is now frozen to allow LBIE to reconcile claims.  Should you wish to submit additional information or amend the submission of your asset claim, please send an email to generalqueries@lbia-eu.com.

5.What is the current situation regarding assets under LBI's control?

Currently, stock lines that are held in depots outside of LIBE's control and over which LBIE has no visibility (e.g., LBI depots) will take longer to resolve and distribute than those where LBIE has control.

LBI has targeted to provide LBIE with information to enable LBIE to update and reconcile LBIE's omnibus claim by end of Q2.  At such time LBIE will work with the LBI trustee to determine individual claimant amounts.  However, there is no indication of when LBI will make its first distribution.

6. What will happen with cash receipts in respect to corporate actions and corporate events (e.g., dividends and coupons) that have been received post administration?

LBIE continues to reconcile these positions and will return to claimants what it receives in respect to cash receipts.  These receipts may not be simultaneously returned with the underlying return of claimant assets.

7. How do I agree my Financing and Derivative claims?

LBIE continues to work with many claimants who will have already been contacted regarding their financing and derivative contracts.  It is crucial for the Administration that every claimant that has these agreements submits a valuation statement immediately.   Without agreement of your financing and derivative positions, LBIE will not be able to distribute trust assets to a claimant.

Creditors should submit all valuation statements to the following email address:  uk.terminationnoticesqueries@lbia-eu.com