Third Announcement in Respect of the Proposed Settlement of the Omnibus Claim

In our Communication dated 29 November 2012, we provided customers with an update in respect of the proposed settlement of the Omnibus Claim, which remains conditional and subject to documentation and relevant court approvals.  In that communication we flagged that further, high level information, would be provided to customers as to the composition of the portfolio of securities that it expects to recover from LBI. 

This third announcement provides a more detailed disclosure of the approximate composition of the portfolio of securities as at 31 October 2012.

The portfolio composition is based on data provided by LBI to LBIE (the “LBI Schedule”) as part of the non binding agreement in principle that was signed by the parties on 4 October 2012. LBIE has taken the LBI Schedule and rolled forward the underlying positions taking into account the impact of corporate actions in the period up to 31 October 2012 and used its prices rather than LBI’s.  As the LBI Schedule is subject to change as a result of maturities, redemptions, mergers, reorganisations, corporate actions and other events, LBIE cannot guarantee 100% accuracy in respect of this information nor confirm that it or the assumptions made in rolling it forward, including in respect of corporate actions, accurately reflect what has actually occurred in the portfolio.

LBIE estimates that the aggregate value as at 31 October 2012 of the cash (including post filing income), common stock and equity type products and fixed income securities due to be received from LBI is approximately $4,429m (51%), $3,559m (41%) and $697m (8%) respectively.

As previously advised, the ultimate recovery for underlying clients will be dependent on a number of events, including the signing of the settlement agreement between LBIE and LBI, the subsequent hearings in the US and English courts in 2013 and the client acceptance of the consensual offer LBIE expects to make early next year.

We expect to publish monthly updates for subsequent price movements.

Tables following with information on securities in the proposed settlement of the Omnibus Claim:
 

• Table A - Details of common stock and equity type products
• Table B - Concentration of common stock and equity type products
• Table C - The country of issue for fixed income securities and their maturity profile
• Table D - Industry and rating information for fixed income securities
• Table E - Concentration of fixed income securities

Important Disclaimer

This communication does not constitute a commitment or offer on the part of LBIE or its Joint Administrators, and should not be construed as such, nor do they constitute any form of advice to the recipients including, without limitation, advice as to risk management.  The contents of this communication are based on provisional analysis by LBIE and/or information provided by LBI. All amounts are unaudited.  In particular, recipients should note that these valuations may differ substantially from an actionable value, particularly in volatile market conditions. LBIE reserves the right without specifying any reasons to amend all or part of this communication.

Any party (including any recipients) who obtains access to and chooses to rely on this communication (or any part thereof) will do so entirely at its own risk.  No person has, nor is held out as having, any authority to give any statement, warranty, proposal or undertaking on behalf of LBIE or its Joint Administrators in connection with this communication.

LBIE and its Joint Administrators will be under no obligation to provide the recipients with access to any additional information, to update this document or to correct any inaccuracies in it which may become apparent.

LBIE and its Joint Administrators, and their respective officers, employees and agents disclaim any liability which may arise from this communication, or any other written or oral information provided in connection herewith, and any errors and/or omissions herein or therein.

Nothing contained in this communication is an acknowledgement of any claim that a recipient or any other claimant may have against LBIE or any other entity. Neither LBIE nor its Joint Administrators shall have any liability to any recipient or to any other person in respect of the information contained herein or for any defect or incompleteness in it. No representation is made by LBIE or its Joint Administrators about any claim that may be asserted against LBIE in respect of the settlement of the Omnibus Claim or any short fall in recovery of positions represented in the Omnibus Claim.