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Lehman July 27

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    Comment - Dick Fuld

  1. 50 Cent Is The Lehman Brothers Of Hip-Hop

    Jul 25, 2015 | Business Insider

    By Jonathan Marino

    Let’s get the obvious comparison out of the way first. Both Dick Fuld, the former CEO of Lehman Brothers, and 50 Cent left some folks who had key financial relationships with them feeling very shortchanged. Lehman Brothers and 50 Cent have something else in common, too...

    2. Comment - Formula 1

  2. Meet The Biggest Winner In The History Of Formula One: Cvc Capital Partners

    Jul 26, 2015 | The Guardian (in HITC)

    ...Michael Schumacher was attracting to the sport, German media giant Kirch borrowed $1.6bn from three banks to acquire a 75% stake in F1. State-owned German bank BayernLB loaned nearly $1bn, with Lehman Brothers and JP Morgan each providing $300m...

    3. Full Text of Stories Below

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

    Comment - Dick Fuld

  1. 50 Cent Is The Lehman Brothers Of Hip-Hop

    Jul 25, 2015 | Business Insider

    By Jonathan Marino

    Let’s get the obvious comparison out of the way first. Both Dick Fuld, the former CEO of Lehman Brothers, and 50 Cent left some folks who had key financial relationships with them feeling very shortchanged. 

    Lehman Brothers and 50 Cent have something else in common, too: There were questions about whether they were really broke even though they both filed for bankruptcy. 

    The rapper's bankruptcy filing came at an interesting time. In the last 12 months, 50 Cent lost a pair of lawsuits that could cost him nearly $25 million.

    If 50 can't come up with the cash, he might have to start selling his assets off to pay his creditors — just like Lehman had to do in the wake of the financial crisis. Eight years after the crisis, the bankrupted bank continues to pay off creditors through asset sales.

    ...Interestingly, Fuld claimed Lehman Brothers wasn’t technically broke despite its bankruptcy filing. Fuld’s public claims came in May, when he spoke at a conference in New York and delivered an inexplicably spirited defense of his time at Lehman Brothers that culminated in the firm’s bankruptcy filing. 

    "I have always said, and now it's being proven. Lehman Brothers in September 2008 was not bankrupt,” Fuld said in his defiant speech.

    Fuld's speech didn't sit too well with his former colleagues. Regardless of whether Fuld's claims are accurate, his colleagues lost much of their life savings when Lehman collapsed.

    For their part, the lawyers opposing 50 Cent insist he is attempting to prove he is insolvent to duck the obligations via his own bankruptcy filing. He dodged a proverbial bullet because the judge overseeing his bankruptcy didn't try to force him into Chapter 7 bankruptcy. This could have led to his entire estate being immediately liquidated to pay off his creditors, including the people he owes...

    For full story:

    http://www.businessinsider.com/50-cent-is-the-lehman-brothers-of-hip-hop-2015-7


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    2. Comment - Formula 1

  2. Meet The Biggest Winner In The History Of Formula One: Cvc Capital Partners

    Jul 26, 2015 | The Guardian (in HITC)

    ...Not everyone has done so well. In 2001, impressed by the huge audiences in Germany that seven-time champion Michael Schumacher was attracting to the sport, German media giant Kirch borrowed $1.6bn from three banks to acquire a 75% stake in F1. State-owned German bank BayernLB loaned nearly $1bn, with Lehman Brothers and JP Morgan each providing $300m.

    However, Kirch’s access to F1’s fortunes was restricted, as the terms of the 1999 bond issue prevented the business from paying a dividend. By the time Kirch collapsed under the weight of its debts in 2002, it had not made any money from F1 and to this day remains its only shareholder not to have generated a return from the sport.

    The loans from the trio of banks were secured on the Formula One stake and when Kirch went into administration they took over the shareholding. However, in the vacuum, they were unable to exercise control over the business and sued Bambino.

    When CVC bought F1 from the banks, it ensured that the mistake was not repeated. Buried in Delta Topco’s articles of association is the revelation that CVC’s shares entitle it to appoint representatives, known as “I Directors”, who can “exercise one vote more than the total number of votes exercised by the other directors.” The articles add that the purpose of this is “to ensure that the I Directors will always have sufficient votes to pass a resolution of the board”.

    It puts a huge premium on CVC’s stake and those riches were unlocked with a debt refinancing which allowed dividends to be paid. Last year alone, F1 made underlying profits of $266.6m on revenue that rose 4.2% to a record $1.4bn, boosted by new races in Russia and Austria. Indeed, F1 is so profitable that it was one of the few assets retained by Lehman’s estate to pay off creditors after the bank went under...

    For full story:

    http://www.hitc.com/en-gb/2015/07/26/meet-the-biggest-winner-in-the-history-of-formula-one-cvc-capita/

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