In connection with its previously announced partial wind-down, Lehman Brothers Treasury Co. B.V. in liquidation (“LBT”) today, through its U.S. counsel Kramer Levin Naftalis & Frankel LLP, announced that it has obtained the results of its solicitation process pursuant to which certain qualified noteholders were given the option to receive substitute notes in exchange for their eligible notes. Based on the information provided by the relevant clearing systems which remains subject to further review and adjustment, noteholders holding eligible notes representing approximately €14 billion of the €24,755,245,547.91 in total acknowledged or otherwise admitted claims against LBT elected to receive substitute notes in exchange for such eligible notes. Accordingly, in accordance with the partial wind-down procedures, LBT will retain approximately US$19.6 billion of its US$34,548,000,000.00 intercompany claim (the “Intercompany Claim”) against Lehman Brothers Holdings Inc. (“LBHI”) that will be used to fund future distributions to holders of substitute notes.

LBT also announced that, as contemplated by its partial wind-down, it has entered into a settlement agreement (the “Settlement Agreement”) with its former affiliates LBHI and Lehman Brothers Special Financing Inc. (“LBSF”). LBHI and LBSF are holders of admitted ordinary claims against LBT in the aggregate amounts of €2,435,117,645.74 and €750,434,794.48, respectively, representing approximately 9.84% and 3.03% of all acknowledged or otherwise admitted claims against LBT. The Settlement Agreement provides, among other things, that in full and final satisfaction of their respective ordinary claims against LBT, LBHI and LBSF shall receive (i) an in-kind distribution of portions of the Intercompany Claim in the respective amounts of US$3,398,408,804.40 and US$1,047,294,046.41, and (ii) a proportionate amount of LBT’s cash on hand subject to various deductions, addbacks and adjustments for purposes of allocating various expenses and reserves.

In accordance with the partial wind-down, those creditors of LBT who were not eligible (or did not elect) to receive substitute notes will receive a final cash distribution from LBT funded with certain available cash and the proceeds of the sale of a portion of the Intercompany Claim through an auction process which is currently scheduled to occur on Wednesday March 20, 2019. As a result of the solicitation process and the Settlement Agreement, LBT expects to place approximately US$10.5 billion of the Intercompany Claim into the auction.

For more information on the partial wind-down, including information about the intercompany claim sale, the final cash distribution, and anticipated timelines, an Information Notice has been posted to LBT’s website at www.lehmanbrotherstreasury.com.

The foregoing is subject to further consents and authorizations and LBT retains sole discretion to abandon or otherwise discontinue any note substitution or sale process at any time, which, if abandoned or discontinued, could result in a termination of the Settlement Agreement. Accordingly, there can be no assurances that either the note substitution, the sale process, or the Settlement Agreement will be effectuated, or if effectuated, the timing thereof. There also can be no assurance as to the amount of cash distributions, if paid, now or in the future.

LBT does not undertake to publicly update its disclosure to reflect developments in this matter.

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Daniel Eggermann, Kramer Levin Naftalis & Frankel LLP
Tel: + 1-212-715-9495

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