lehman feb 18

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

Bermuda

1. Lehman Reaches $125M Deal With Bermuda Insurance Unit

   Feb 17, 2015 | Law360

   By Michael Lipkin
   
   
   The Lehman Brothers Inc. bankruptcy trustee reached a settlement Tuesday with Bermuda-based reinsurance affiliate Lehman Re Ltd., cutting the unit's $195 million claim against its parent down to $125 million. Liquidators for Lehman Re had claimed it was owed millions after LBI failed to buy back more than two dozen...

Full Text of Stories Below

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

Bermuda

1. Lehman Reaches $125M Deal With Bermuda Insurance Unit

   Feb 17, 2015 | Law360

   By Michael Lipkin

   The Lehman Brothers Inc. bankruptcy trustee reached a settlement Tuesday with Bermuda-based reinsurance affiliate Lehman Re Ltd., cutting the unit's $195 million claim against its parent down to $125 million.
   
   Liquidators for Lehman Re had claimed it was owed millions after LBI failed to buy back more than two dozen securities after it defaulted, under a 1999 earlier master repurchase agreement. Trustee James W. Giddens contested the valuation of the $195 million in general creditor claims, but agreed to $125 million in nonpriority unsecured creditor claims, according to a motion seeking court approval.
   
   “All other aspects of the claims filed by Lehman Re are disallowed and will be expunged,” lawyers for Giddens wrote.
   
   Under the 1999 deal between LBI, Lehman Re and Lehman Brother Commercial Paper Inc., Lehman Re said it bought 25 securities from LBI for $273.4 million before its bankruptcy. However, LBI allegedly failed to buy them back as required after it went under, according to the motion.
   
   Lehman Re said it suffered $189.7 million in damages because the securities were only worth about $84 million in 2008, and had another $5.2 million claim over a balance owed in a nontrading intercompany account.
   
   Aetna Life Insurance Co. had also submitted claims in 2009 for assets LBI allegedly managed for Lehman Re. Aetna eventually transferred those claims to CCP Credit Acquisition Holdings LLC and Centerbridge Special Credit Partners II LP in 2013, but those two companies will need to withdraw the claims in order for Tuesday's settlement to go into effect, according to the motion.
   
   Lehman Brothers Holdings Inc., the parent of broker-dealer unit LBI, reached its own settlement with Lehman Re in February 2012, agreeing to $1 billion out of a combined $2.3 billion in claims asserted by several of the defunct investment bank's Bermuda-based affiliates. The deal also involved Lehman Re's subsidiary Congress Life Insurance Co. and its creditor Pulsar Re Ltd.
   
   The settlement, the result of two years of negotiation, dealt with claims from the 1999 master purchase agreement and a 2007 net worth maintenance agreement in which LBHI allegedly agreed to maintain minimum solvency margins for Lehman Re.
   
   Under the terms of the settlement, Lehman Re held allowed claims of $490 million against LCPI and $415 million against LBHI for its claims stemming from the two agreements...

   For full story:

   http://www.law360.com/articles/622346/lehman-reaches-125m-deal-with-bermuda-insurance-unit
   

   Return to headline | Return to top

Full Text of Stories Below