Preview Newsletter
Lehman June 10
-
Barclays And Lehman Brothers (Finally) Settle Brokerage Debt
Jun 10, 2015 | ValueWalk
By Clayton Browne
It's been a long time coming, but megabank Barclays PLC (NYSE:BCS) (LON:BARC) and the trustee for Lehman Brothers Holdings Inc Plan Trust (OTCMKTS:LEHMQ) have finally reached a settlement regarding margin assets held by the brokerage when it was sold to Barclays back in 2008. As a part of the just-announced settlement... -
$68B In Lehman Bankruptcy Claims Still In Play, GC Says
Jun 10, 2015 | Law360
By Jonathan Randles
Eight years after Lehman Brothers Holdings Inc. collapsed, legal claims seeking more than $68 billion from the failed investment bank remain unresolved and will likely breed fierce litigation for years to come, the estate's legal chief told a New York bankruptcy judge on Tuesday. -
Madoff Feeder's $75M Settlement OK'd Despite Objections
Jun 9, 2015 | Law360
By Cara Salvatorw
...The settlement also has interesting ties to the estate of Lehman Brothers, which is protesting a claims taxonomy that would discount the value of its shares by 99 percent, calling Lehman a “swap counterparty” to the shares. But Judge Griesa said Lehman fell comfortably into the relevant definition specified in the December allocation plan...
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
Barclays
Bankruptcy Claims
Madoff
Full Text of Stories Below
-
Barclays And Lehman Brothers (Finally) Settle Brokerage Debt
Jun 10, 2015 | ValueWalk
By Clayton Browne
It's been a long time coming, but megabank Barclays PLC (NYSE:BCS) (LON:BARC) and the trustee for Lehman Brothers Holdings Inc Plan Trust (OTCMKTS:LEHMQ) have finally reached a settlement regarding margin assets held by the brokerage when it was sold to Barclays back in 2008. As a part of the just-announced settlement, Lehman will pay Barclays $1.28 billion for the margin assets it owed to the financial institution.
More on the Barclays and Lehman settlement
The legal tussle was related to the assets that accrued to Barclays when it bought Lehman’s U.S. brokerage unit in bankruptcy proceedings during the financial crisis in September 2008, and a "secret discount" and the fact the deal was forced to happen so quickly were a key contentions in the 2010 trial.
The settlement calls for both sides to drop current and future litigation against one another, according to a filing with U.S. Bankruptcy Court in Manhattan. The good news is close to $600 million cash will become available for Lehman creditors, because the trustee had earmarked around $1.87 billion for the dispute. Both sides agreed that the payment is $80 million less than the trustee would have had to pay if a settlement had not been reached.
The courtroom battle over the Lehman deal first came to fore in 2009, when Lehman sued Barclays, claiming the bank negotiated a secret discount when it made the deal for Lehman’s brokerage in 2008.
U.S. Bankruptcy Judge Shelley Chapman will decide whether to accept the deal at a hearing at the end of this month. Statements from the parties
“This agreement ends years of litigation and achieves the best result under the circumstances as winding-down and closing out the estate continues in earnest,” noted Lehman trustee James W. Giddens...
For full story:
http://www.valuewalk.com/2015/06/barclays-lehman-brothers/
-
$68B In Lehman Bankruptcy Claims Still In Play, GC Says
Jun 10, 2015 | Law360
By Jonathan Randles
Eight years after Lehman Brothers Holdings Inc. collapsed, legal claims seeking more than $68 billion from the failed investment bank remain unresolved and will likely breed fierce litigation for years to come, the estate's legal chief told a New York bankruptcy judge on Tuesday.
Lehman Chief General Counsel Matthew Cantor said that although significant progress has been made in winding down the bank's affairs, the case remains a “megabankruptcy.” Cantor's assessment came during a presentation to U.S. Bankruptcy Judge Shelley C. Chapman that outlined the many obstacles to resolving Lehman's affairs.
Cantor indicated that the most contentious litigation in the bankruptcy is still to come. The parties that have not settled, by and large, represent sophisticated institutions that are willing to slow down proceedings to maximize their recoveries, he said.
“The wind-down is entering a phase where more court resources will be needed to advance the process,” Cantor said at the hearing.
Attempting to profit from the bankruptcy, many of Lehman's remaining adversaries “have employed a variety of methods to inflate their claims relative to other, comparable creditors," Lehman said. Currently, Lehman has approximately $15 billion in assets across its estates and is seeking to recover millions of dollars more in over a dozen clawback suits, according to a presentation Cantor provided to the court.
Among the largest matters in need of resolution is litigation over derivatives trades and securities involving JPMorgan Chase Bank NA, Citibank NA and Credit Suisse AG. And unlike other big banks that have settled derivative disputes with Lehman, Citibank and JPMorgan had received billions of dollars from Lehman before it filed for bankruptcy protection, Cantor said.
Resolving these disputes with the banks over derivative trades will require substantial court resources, Cantor said. JPMorgan is seeking $2.3 billion, Citi seeks more than $2 billion, and Credit Suisse has filed claims seeking approximately $1.2 billion, he said.
Throughout the hearing, Judge Chapman praised Lehman and its outside counsel for working to resolve the case, in court and through mediation, as expeditiously as possible. Still, Judge Chapman indicated that Lehman's bankruptcy would continue into 2018 — more than a decade after the investment bank filed for court protection. During the hearing, Judge Chapman periodically rested her chin in her right hand and, at one point, sighed during Cantor's presentation. -
Madoff Feeder's $75M Settlement OK'd Despite Objections
Jun 9, 2015 | Law360
By Cara Salvatorw
Despite objections, a New York federal judge has approved a $75 million settlement between a Massachusetts Mutual Life Insurance Co. unit that fed funds to Bernie Madoff's investment firm and plaintiffs including a group who were readmitted to the class after withdrawing from it.
...“Lead counsel observes that members of the settlement class never detrimentally relied on the decision of the opt-out plaintiffs to opt out," he said. "Numerous courts have permitted opt-outs to rejoin a class under similar circumstances.”
The settlement also has interesting ties to the estate of Lehman Brothers, which is protesting a claims taxonomy that would discount the value of its shares by 99 percent, calling Lehman a “swap counterparty” to the shares. But Judge Griesa said Lehman fell comfortably into the relevant definition specified in the December allocation plan.
The settlement fund was $100 million in 2011, the year it was originally staked out, but has seen significant withdrawals since....For full story:
http://www.law360.com/articles/665705/madoff-feeder-s-75m-settlement-ok-d-despite-objections
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
Barclays
Bankruptcy Claims
Madoff
Full Text of Stories Below
Add recipients
Suggested