Lehman Brothers Bankhaus AG Settlement Agreement - 20/03/2014

The Joint Administrators are pleased to announce the signing of a settlement agreement between LBIE and Lehman Brothers Bankhaus AG (“LBB”) on 14 March 2014. The settlement concludes all matters between the estates both from a Client Money and House perspective and brings to a close the multi faceted litigation which had been running in the German courts over recent years.

The financial outcome of the settlement includes:

i. LBB admitting an unsecured claim from LBIE of €469m, comprising of Client Money claim €403m and LBIE House claim €66m;

ii. LBIE's remaining €403m Client Money claim ranking as a subordinated claim against LBB;

iii. LBIE releasing a £0.6bn reserve in respect of the LBB inbound claim which has been withdrawn; and

iv. LBIE retaining certain ring fenced cash and securities.

Greater disclosure on the financial implications of this settlement will be available in the eleventh LBIE progress report to be published in April.

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