Lehman July 1

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Unsecured Creditor Distribution

1. Another Payout's Coming So Lehman Creditors Better Not Hide -- Market Talk

   Jun 30, 2015 | The Wall Street Journal - Market Talk

   By Joseph Checkler
   
   
   The trustee unwinding the defunct Lehman Brothers brokerage says he plans to seek permission for a third payout to unsecured creditors on or about July 13. The trustee, James W. Giddens, has already paid unsecured creditors about $6B in two distributions, one last July and another earlier this year. Giddens, who had to wait to pay...

Barclays PLC

2. Barclays-Lehman Settlement Deal Gets Judicial Approval

   Jun 30, 2015 | Zacks

   The long-drawn legal battle between Barclays PLC (BCS - Analyst Report) and Lehman Brothers Inc. has finally come to an end. Judge Shelley C. Chapman of the U.S. Bankruptcy Court in Manhattan has approved the settlement, under which Lehman will be paying $1.28 billion to Barclays. The judge stated the deal as “fair and equitable.”

Full Text of Stories Below

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Unsecured Creditor Distribution

1. Another Payout's Coming So Lehman Creditors Better Not Hide -- Market Talk

   Jun 30, 2015 | The Wall Street Journal - Market Talk

   By Joseph Checkler

   The trustee unwinding the defunct Lehman Brothers brokerage says he plans to seek permission for a third payout to unsecured creditors on or about July 13. The trustee, James W. Giddens, has already paid unsecured creditors about $6B in two distributions, one last July and another earlier this year. Giddens, who had to wait to pay the unsecured creditors until he refunded 100% of the $106B owed to "customers" of the brokerage, says in a filing that holders of claims on July 10 will be eligible for their money. Holders of claims traded after that date will have to wait until next time. If prior distributions are any indication, expect a flurry of Lehman claims trades in the next nine days.

   Return to headline | Return to top

Barclays PLC

2. Barclays-Lehman Settlement Deal Gets Judicial Approval

   Jun 30, 2015 | Zacks

   The long-drawn legal battle between Barclays PLC (BCS - Analyst Report) and Lehman Brothers Inc. has finally come to an end. Judge Shelley C. Chapman of the U.S. Bankruptcy Court in Manhattan has approved the settlement, under which Lehman will be paying $1.28 billion to Barclays. The judge stated the deal as “fair and equitable.”
   
   The settlement was announced earlier this month. Moreover, both parties have agreed to drop current as well as prospective charges against each other.
   
   The long-running dispute regarding Lehman’s margin accounts arose when Barclays had purchased the former’s brokerage unit in 2008. While Barclays claimed to have purchased the concerned accounts as part of the transaction, along with other brokered assets from Lehman; the latter argued that such accounts were cash, and hence, part of the company’s total estate.
   
   When the deal was announced earlier in June, James W. Giddens, the trustee in charge of unwinding Lehman’s brokerage unit, had stated that it would free up cash worth roughly $580 million for payment to Lehman’s creditors, as the company had initially maintained a litigation reserve of roughly $1.87 billion.
   
   For Barclays, the deal would lead to a pre-tax gain of $750 million in its second-quarter results.
   
   Notably, Barclays and Lehman agreed that the total payment is $80 million short of what Giddens would have paid, had the settlement not taken place. Also, nearly $255 million related to exchange-traded derivatives is expected from third parties...

   For full story:

   http://www.zacks.com/stock/news/180139/barclayslehman-settlement-deal-gets-judicial-approval
   

   Return to headline | Return to top

Full Text of Stories Below