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8-K - FORM 8-K - LEHMAN BROTHERS HOLDINGS INC. PLAN TRUST | d584324d8k.htm |
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
In re:
|
Chapter 11 Case No. | |
Lehman Brothers Holdings Inc., et al., | 08-13555 | |
Jointly Administered | ||
Debtors. |
QUARTERLY FINANCIAL REPORT
AS OF APRIL 5, 2018
BALANCE SHEETS AND
POST-FIFTEENTH DISTRIBUTION CASH FLOW ESTIMATES
DEBTORS ADDRESS: | LEHMAN BROTHERS HOLDINGS INC. | |
c/o KRISTINE DICKSON CHIEF FINANCIAL OFFICER | ||
277 PARK AVENUE | ||
46th FLOOR | ||
NEW YORK, NY 10172 | ||
DEBTORS ATTORNEYS: | WEIL, GOTSHAL & MANGES LLP | |
c/o JACQUELINE MARCUS, GARRETT A. FAIL | ||
767 FIFTH AVENUE | ||
NEW YORK, NY 10153 | ||
REPORT PREPARER: | LEHMAN BROTHERS HOLDINGS INC., AS PLAN ADMINISTRATOR |
Date: July 27, 2018 |
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Table of Contents
I. |
Schedule of Debtors | 3 | ||||||||
II. |
Notes to the Balance Sheets and Managements Discussion & Analysis | 4 | ||||||||
Note 1 Basis of Presentation | 4 | |||||||||
Note 2 Use of Estimates | 5 | |||||||||
Note 3 Cash and Short-Term Investments | 5 | |||||||||
Note 4 Cash and Short-Term Investments Pledged or Restricted | 6 | |||||||||
Note 5 Financial Instruments and Other Inventory Positions | 7 | |||||||||
Note 6 Receivables from Debtors and Debtor-Controlled Entities and Other Assets | 10 | |||||||||
Note 7 Investments in Affiliates | 12 | |||||||||
Note 8 Due from/to Affiliates | 13 | |||||||||
Note 9 Payables to Debtors and Debtor-Controlled Entities and Other Liabilities | 22 | |||||||||
Note 10 Taxes Payable | 23 | |||||||||
Note 11 Liabilities Subject to Compromise | 24 | |||||||||
Note 12 Legal Proceedings | 27 | |||||||||
Note 13 Currency Translation | 32 | |||||||||
Note 14 Financial Systems and Control Environment | 32 | |||||||||
III. |
Balance Sheets | 33 | ||||||||
IV. |
Post-Fifteenth Distribution Cash Flow Estimates | 36 |
QUESTIONS
The Company has established an email address to receive questions from readers regarding this presentation and its other financial disclosures. The Company plans to review questions received, and for those subjects which the Company determines a response would not (i) violate a confidentiality provision, (ii) place the Company in a competitive or negotiation disadvantage, or (iii) be unduly burdensome relative to the value of information requested, the Company shall endeavor to post a response (maintaining the anonymity of the originators of the questions). The Company assumes no obligation to respond to email inquiries.
Please email questions, with document references as relevant, to:
QUESTIONS@lehmanholdings.com
The Companys previously posted responses can be found on the Epiq website maintained for the Company:
www.lehman-docket.com under the Key Documents tab and the Responses to Questions Submitted category
Page 2
Quarterly Financial Report as of April 5, 2018 (Unaudited)
I. Schedule of Debtors
The twenty three entities listed below (the Debtors) filed for bankruptcy in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) on the dates indicated below. On December 6, 2011, the Bankruptcy Court confirmed the Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. and its Affiliated Debtors (the Plan). On March 6, 2012, the Effective Date (as defined in the Plan) occurred. As of the date hereof, the following Debtors chapter 11 cases remain open:
Case No. | Date Filed (Commencement Date) |
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Lehman Brothers Holdings Inc. (LBHI) |
08-13555 | 9/15/2008 | ||||||
Lehman Brothers Commodity Services Inc. (LBCS) |
08-13885 | 10/3/2008 | ||||||
Lehman Brothers Special Financing Inc. (LBSF) |
08-13888 | 10/3/2008 | ||||||
Lehman Brothers OTC Derivatives Inc. (LOTC) |
08-13893 | 10/3/2008 | ||||||
Lehman Commercial Paper Inc. (LCPI) |
08-13900 | 10/5/2008 | ||||||
Lehman Brothers Commercial Corporation (LBCC) |
08-13901 | 10/5/2008 | ||||||
BNC Mortgage LLC |
09-10137 | 1/9/2009 | ||||||
Structured Asset Securities Corporation |
09-10558 | 2/9/2009 |
The following Debtors chapter 11 cases were closed in 2016 and 2018, pursuant to final decrees entered by the Bankruptcy Court (Docket No. 51920, No. 54163, and No. 58257):
Case No. | Date Filed | Date Closed | ||||||||||
LB 745 LLC |
08-13600 | 9/16/2008 | 1/28/2016 | |||||||||
PAMI Statler Arms LLC |
08-13664 | 9/23/2008 | 1/28/2016 | |||||||||
CES Aviation LLC |
08-13905 | 10/5/2008 | 1/28/2016 | |||||||||
CES Aviation V LLC |
08-13906 | 10/5/2008 | 1/28/2016 | |||||||||
CES Aviation IX LLC |
08-13907 | 10/5/2008 | 1/28/2016 | |||||||||
LB 2080 Kalakaua Owners LLC |
09-12516 | 4/23/2009 | 1/28/2016 | |||||||||
LB Somerset LLC |
09-17503 | 12/22/2009 | 1/28/2016 | |||||||||
LB Preferred Somerset LLC |
09-17505 | 12/22/2009 | 1/28/2016 | |||||||||
East Dover Limited |
08-13908 | 10/5/2008 | 12/15/2016 | |||||||||
Luxembourg Residential Properties Loan Finance S.a.r.l. |
09-10108 | 1/7/2009 | 12/15/2016 | |||||||||
Merit LLC |
09-17331 | 12/14/2009 | 12/15/2016 | |||||||||
Lehman Brothers Derivative Products Inc. (LBDP) |
08-13899 | 10/5/2008 | 06/14/2018 | |||||||||
Lehman Brothers Financial Products Inc. (LBFP) |
08-13902 | 10/5/2008 | 06/14/2018 | |||||||||
Lehman Scottish Finance L.P. |
08-13904 | 10/5/2008 | 06/14/2018 | |||||||||
LB Rose Ranch LLC |
09-10560 | 2/9/2009 | 06/14/2018 |
Page 3
Quarterly Financial Report as of April 5, 2018 (Unaudited)
II. Notes to the Balance Sheets and Managements Discussion & Analysis
Page 4
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Page 5
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 4 Cash and Short-Term Investments Pledged or Restricted
The following table summarizes the components of restricted cash as of April 5, 2018:
Debtors | Debtor- Controlled |
Total Debtors and Debtor- Controlled Entities |
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($ in millions) | LBHI | LBSF | LCPI | Other | Total | |||||||||||||||||||||||
Reserves for Claims: |
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Disputed unsecured claims (1) |
$ | 163 | $ | 363 | $ | | $ | 99 | $ | 625 | $ | | $ | 625 | ||||||||||||||
Secured, Admin, Priority Claims and Other |
36 | 25 | 4 | 12 | 76 | | 76 | |||||||||||||||||||||
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Subtotal, Claims Reserves |
199 | 387 | 4 | 112 | 702 | | 702 | |||||||||||||||||||||
Operating Expenses (2) |
119 | 32 | 7 | 4 | 163 | 4 | 167 | |||||||||||||||||||||
Incentive Fees (2) |
57 | 4 | 5 | 2 | 68 | | 68 | |||||||||||||||||||||
Other |
27 | | 0 | | 27 | 28 | 55 | |||||||||||||||||||||
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Total |
$ | 402 | $ | 424 | $ | 16 | $ | 118 | $ | 959 | $ | 32 | $ | 991 | ||||||||||||||
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Totals may not foot due to rounding. |
(1) | Represents the cash reserve for the principal amount of disputed unsecured claims subsequent to the fifteenth Plan Distribution on April 5, 2018. |
(2) | Represents reserves for estimated future operating expenses and incentive fees. As the Company cannot definitively specify a date for the final termination of its activities, particularly litigation-related activities, estimates for future operating expenses are subject to change. |
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions
Financial instruments and other inventory positions are reported at estimated recovery values, which are determined by utilizing market prices, certain assumptions, estimates and/or pricing models to estimate future undiscounted cash flows.
The table below presents recovery values as of April 5, 2018 by asset portfolio, and the changes in recovery values since the previously filed Quarterly Financial Report as of December 31, 2017:
Activity 01/01/1804/05/18 | ||||||||||||||||
$ in millions |
Inventory as of December 31, 2017 |
Recovery Value Change (1) |
Cash Activities (2) | Inventory as of April 5, 2018 |
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Commercial Real Estate |
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Debtors: |
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Lehman Commercial Paper Inc. |
48 | (0 | ) | 0 | 48 | |||||||||||
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Subtotal Debtors |
48 | (0 | ) | 0 | 48 | |||||||||||
Debtor-Controlled |
10 | 2 | (0 | ) | 12 | |||||||||||
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Total Commercial Real Estate |
58 | 2 | 0 | 60 | ||||||||||||
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Residential Real Estate and Other |
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Debtors: |
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Lehman Brothers Holdings Inc. |
3 | 20 | (13 | ) | 11 | |||||||||||
Lehman Commercial Paper Inc. |
16 | 7 | (7 | ) | 15 | |||||||||||
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Subtotal Debtors |
19 | 27 | (20 | ) | 26 | |||||||||||
Debtor-Controlled |
0 | 0 | (0 | ) | | |||||||||||
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Total Residential Real Estate and Other |
19 | 27 | (20 | ) | 26 | |||||||||||
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Private Equity / Principal Investments (PEPI) |
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Debtors: |
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Lehman Brothers Holdings Inc. |
6 | (0 | ) | (3 | ) | 3 | ||||||||||
Lehman Commercial Paper Inc. |
3 | 0 | (3 | ) | | |||||||||||
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Subtotal Debtors |
9 | (0 | ) | (6 | ) | 3 | ||||||||||
Debtor-Controlled |
95 | (1 | ) | (8 | ) | 85 | ||||||||||
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Total Private Equity / Principal Investments |
104 | (1 | ) | (14 | ) | 88 | ||||||||||
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Derivative Receivables and Related Assets |
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Debtors: |
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Lehman Brothers Special Financing Inc. |
50 | 31 | (14 | ) | 67 | |||||||||||
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Subtotal Debtors |
50 | 31 | (14 | ) | 67 | |||||||||||
Debtor-Controlled |
0 | 0 | | 0 | ||||||||||||
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Total Derivative Receivables and Related Assets |
50 | 32 | (14 | ) | 67 | |||||||||||
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Totals |
$ | 231 | $ | 59 | $ | (49 | ) | $ | 241 | |||||||
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(1) | Represents adjustments to recovery values based on changes in market prices, realized gains or losses from assets sales above or below previously recorded recovery values, and/or changes in assumptions and/or estimates which, in the Companys judgment, impact the Companys recoverable value on the underlying assets. |
(2) | Cash activities are presented net of disbursements. Amounts may differ from previously filed Schedules of Cash Receipts and Disbursements mainly due to timing and classification differences. Cash activities related to Derivative Receivables and Related Assets include collections on open and terminated trades, net of hedging activities. |
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions (continued)
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions (continued)
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 6 Receivables from Debtors and Debtor-Controlled Entities and Other Assets
Receivables from Debtors and Debtor-Controlled Entities and Other Assets includes: (i) $176 million related to certain post-petition activities between and among Debtors and Debtor-Controlled Entities, with the corresponding liabilities reflected in Payables to Debtors and Debtor-Controlled Entities and Other Liabilities, and (ii) $346 million of other assets.
The following table summarizes the main components of Receivables from Debtors and Debtor-Controlled Entities and Other Assets as of April 5, 2018:
Debtors | Debtor- Controlled Entities |
Total Debtors and Debtor- Controlled Entities |
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$ in millions | LBHI | LCPI | LBSF | Other Debtors |
Total | |||||||||||||||||||||||
Secured Notes (1) |
$ | | $ | | $ | | $ | 42 | $ | 42 | $ | 69 | $ | 111 | ||||||||||||||
Fundings and other activities (2) |
50 | 0 | 0 | 4 | 54 | 12 | 66 | |||||||||||||||||||||
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Receivables from Debtors and Debtor-Controlled Entities |
50 | 0 | 0 | 45 | 95 | 81 | 176 | |||||||||||||||||||||
Receivable related to Fenway (3) |
79 | | | | 79 | | 79 | |||||||||||||||||||||
Affiliate Claims (4) |
186 | | 9 | 0 | 196 | 0 | 196 | |||||||||||||||||||||
Receivable from Brookfield (5) |
52 | | | | 52 | | 52 | |||||||||||||||||||||
Other |
8 | 0 | (0 | ) | 0 | 8 | 11 | 19 | ||||||||||||||||||||
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Total Other Assets |
325 | 0 | 9 | 1 | 335 | 11 | 346 | |||||||||||||||||||||
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Total Receivables from Debtors and Debtor-Controlled Entities and Other Assets |
$ | 375 | $ | 0 | $ | 9 | $ | 46 | $ | 430 | $ | 92 | $ | 522 | ||||||||||||||
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(1) | Includes: |
(i) | a loan to LBHI from a Debtor-Controlled Entity of $69 million, secured by LBHI assets; and |
(ii) | a loan to LCPI from LBCC of $42 million, secured by LCPI assets. |
(2) | Includes $50 million primarily related to fundings (e.g. capital calls) by LBHI and cost allocations. |
(3) | Represents unsecured claims asserted by LBHI against LCPI based on the Fenway transactions, as disclosed in Section 6.5(h) of the Plan, net of $151 million of payments received by LBHI as a result of Plan Distributions. |
(4) | Represents $196 million of claims against Non-Controlled Affiliates acquired through settlements with third parties valued at estimated recoveries, net of distributions. The largest components of Affiliate Claims, at the admitted claim amounts prior to distributions, are shown below: |
in millions |
Local Currency |
Admitted Claims in Local Currency |
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Lehman Brothers Finance S.A. |
CHF | 720 | ||||||
Lehman Brothers Limited |
GBP | 66 | ||||||
Storm Funding Ltd |
GBP | 1,783 | ||||||
Lehman Brothers International (Europe) |
GBP | 36 |
(5) | Represents a receivable from Brookfield that was recorded as a result of the Lehman Brothers U.K. Holdings (Delaware) Inc. (LUK) and Lehman Pass-Through Securities Inc. (LPTSI) Stock and Note Sale in August 2017. Refer to Note 7 Investments in Affiliates, LUK and LPTSI Stock and Note Sale, for additional information. |
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 6 Receivables from Debtors and Debtor-Controlled Entities and Other Assets (continued)
Page 11
Quarterly Financial Report as of April 5, 2018 (Unaudited)
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Page 13
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(a) Intercompany Balances Among Debtors and Debtor-Controlled Entities
The table below presents the Due from/to Debtors and Debtor-Controlled Entities balances as of April 5, 2108, and the related activity since the previously filed Quarterly Financial Report as of December 31, 2017:
Activity 1/1/184/5/18 | ||||||||||||||||||||||||
$ in millions | As of December 31, 2017 |
Cash Receipts |
Cash Distributions |
Claim Assignments (1) |
Other | As of April 5, 2018 |
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Due From Controlled |
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Debtors: |
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Lehman Brothers Holdings Inc. |
$ | 19,245 | $ | (398 | ) | $ | | $ | 620 | $ | 89 | $ | 19,555 | |||||||||||
Lehman Commercial Paper Inc. |
5,224 | (620 | ) | | 2,137 | (21 | ) | 6,720 | ||||||||||||||||
Lehman Brothers Special Financing Inc. |
417 | (81 | ) | | | 25 | 362 | |||||||||||||||||
Other Debtors |
397 | (1 | ) | | (395 | ) | (1 | ) | 0 | |||||||||||||||
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Subtotal Debtors |
25,284 | (1,101 | ) | | 2,361 | 92 | 26,637 | |||||||||||||||||
Debtor-Controlled |
2,412 | (1 | ) | | (2,410 | ) | (0 | ) | 0 | |||||||||||||||
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Total |
$ | 27,696 | $ | (1,102 | ) | $ | | $ | (49 | ) | $ | 92 | $ | 26,637 | ||||||||||
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Due To Controlled (2) |
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Debtors: |
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Lehman Brothers Holdings Inc. |
$ | 3,867 | $ | | $ | (23 | ) | $ | (209 | ) | $ | (0 | ) | $ | 3,636 | |||||||||
Lehman Commercial Paper Inc. |
2,955 | | | | (5 | ) | 2,950 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
10,127 | | (62 | ) | 140 | (26 | ) | 10,179 | ||||||||||||||||
Other Debtors |
411 | | (420 | ) | | 120 | 111 | |||||||||||||||||
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Subtotal Debtors |
17,360 | | (505 | ) | (69 | ) | 89 | 16,875 | ||||||||||||||||
Debtor-Controlled |
10,231 | | (593 | ) | | 3 | 9,642 | |||||||||||||||||
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Total |
$ | 27,592 | $ | | $ | (1,098 | ) | $ | (69 | ) | $ | 92 | $ | 26,517 | ||||||||||
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(1) | Claim Assignments, net of distributions, primarily includes (i) the assignment of claims against LBHI by Lehman ALI Inc. to LCPI and LBHI of approximately of $2,209 million and $130 million, respectively, as a result of corporate restructuring activities, (ii) the sale of LBCS claims against LBSF to LBHI of $350 million, (iii) purchase by LBHI of $140 million of claims against LBSF from Lehman Brothers Japan Inc. and Sunrise Finance Co. Ltd, and (iv) assignment of the post-petition interest claim against LBCC in lieu of a partial redemption of preferred shares issued by LUK to LBHI. |
(2) | Due to Controlled from Debtors balances are reflected in Liabilities Subject to Compromise on the April 5, 2018 Balance Sheets. |
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Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(a) Intercompany Balances Among Debtors and Debtor-Controlled Entities (continued)
The following table presents a summary of Due from/to Debtors and Debtor-Controlled Entities for Debtors as of April 5, 2018:
LBHI | LBSF | LCPI | Other Debtors | Total Debtors | ||||||||||||||||||||||||||||||||||||
$ in millions | Due from |
Due to | Due from |
Due to | Due from |
Due to | Due from |
Due to | Due from |
Due to | ||||||||||||||||||||||||||||||
Lehman Brothers Holdings Inc |
$ | | $ | | $ | 172 | $ | (10,179 | ) | $ | 3,016 | $ | (2,769 | ) | $ | 0 | $ | (111 | ) | $ | 3,187 | $ | (13,058 | ) | ||||||||||||||||
LB Special Financing Inc |
10,179 | (172 | ) | | | 0 | (181 | ) | 0 | 0 | 10,179 | (353 | ) | |||||||||||||||||||||||||||
Lehman Commercial Paper Inc |
2,769 | (3,016 | ) | 181 | (0 | ) | | | | 0 | 2,950 | (3,016 | ) | |||||||||||||||||||||||||||
Structured Asset Securities Corp |
52 | | | | | | | | 52 | | ||||||||||||||||||||||||||||||
LB Commodity Services Inc |
59 | (0 | ) | | (0 | ) | | (0 | ) | | (0 | ) | 59 | (0 | ) | |||||||||||||||||||||||||
LB Commercial Corporation |
(0 | ) | (0 | ) | (0 | ) | | (0 | ) | | 0 | | (0 | ) | (0 | ) | ||||||||||||||||||||||||
LB OTC Derivatives Inc |
0 | | 0 | | | | | | 0 | | ||||||||||||||||||||||||||||||
Other Debtors |
0 | | 0 | | | | 0 | (0 | ) | 0 | (0 | ) | ||||||||||||||||||||||||||||
RACERS Claims (1) |
569 | | | | | | | | 569 | | ||||||||||||||||||||||||||||||
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Total Debtors |
$ | 13,627 | $ | (3,187 | ) | $ | 353 | $ | (10,179 | ) | $ | 3,016 | $ | (2,950 | ) | $ | 0 | $ | (111 | ) | $ | 16,996 | $ | (16,427 | ) | |||||||||||||||
Lehman Ali Inc: |
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Lehman Ali Inc (PCO) |
| | | | 1,934 | | 0 | | 1,934 | | ||||||||||||||||||||||||||||||
LB I Group Inc: |
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LB I Group Inc (PCO) |
1,532 | | 6 | | 43 | | (0 | ) | | 1,582 | | |||||||||||||||||||||||||||||
LB Offshore Partners Ltd |
341 | | | | 1 | | 0 | | 342 | | ||||||||||||||||||||||||||||||
DL Mortgage Corp |
| 0 | 0 | | 747 | | | | 748 | 0 | ||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc: |
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314 Commonwealth Ave Inc (PCO) |
785 | 0 | | | | | | 0 | 785 | 0 | ||||||||||||||||||||||||||||||
Other: |
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Pami Ali LLC |
1,754 | (0 | ) | 1 | | 980 | | | | 2,734 | (0 | ) | ||||||||||||||||||||||||||||
Luxembourg Finance S.a.r.l. |
167 | | | | | | | | 167 | | ||||||||||||||||||||||||||||||
Real Estate Private Equity Inc |
628 | | | | | | | | 628 | | ||||||||||||||||||||||||||||||
SMF No.1 Limited |
142 | | | | | | | | 142 | | ||||||||||||||||||||||||||||||
Repe LBREP LP, LLC |
185 | | | | | | | | 185 | | ||||||||||||||||||||||||||||||
Lehman Brothers Global Services Inc. |
49 | | | | | | | | 49 | | ||||||||||||||||||||||||||||||
Claims held by third parties (2) |
| (448 | ) | | | | | | | | (448 | ) | ||||||||||||||||||||||||||||
Other |
345 | | 1 | | | | | (0 | ) | 346 | (0 | ) | ||||||||||||||||||||||||||||
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Total Debtor-Controlled Entities |
$ | 5,928 | $ | (448 | ) | $ | 9 | $ | | $ | 3,704 | $ | | $ | 0 | $ | 0 | $ | 9,641 | $ | (448 | ) | ||||||||||||||||||
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|
|||||||||||||||||||||
Total |
$ | 19,555 | $ | (3,635 | ) | $ | 362 | $ | (10,179 | ) | $ | 6,720 | $ | (2,950 | ) | $ | 0 | $ | (111 | ) | $ | 26,637 | $ | (16,875 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PCO parent company only
(1) | Refer to Section IV.I.b of the Disclosure Statement for further information on the RACERS Claims. |
(2) | Claims held by third parties represent claims, net of distributions, originally held by LUK. |
Page 15
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(a) Intercompany Balances Among Debtors and Debtor-Controlled Entities (continued)
The following table presents a summary of Due from/to Affiliates balances for Debtor-Controlled Entities as of April 5, 2018:
Lehman ALI Inc. | LB I Group Inc. | 314 Commonwealth Ave. Inc. |
Other Debtor- Controlled Entities |
|||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | | $ | (0 | ) | $ | (0 | ) | $ | (1,873 | ) | $ | (0 | ) | $ | (785 | ) | $ | 0 | $ | (1,921 | ) | ||||||||||
Lehman Commercial Paper Inc. |
| (1,934 | ) | | (791 | ) | | | | (980 | ) | |||||||||||||||||||||
Lehman Brothers Special Financing Inc. |
| | | (7 | ) | | | 2 | (1 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Debtors |
$ | | $ | (1,934 | ) | $ | (0 | ) | $ | (2,671 | ) | $ | (0 | ) | $ | (785 | ) | $ | 2 | $ | (2,901 | ) | ||||||||||
Debtor-Controlled: |
||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc |
$ | 45 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Lehman Ali Inc (1) |
| | 0 | | | (45 | ) | 174 | | |||||||||||||||||||||||
Real Estate Private Equity Inc (1) |
| | | | | | 218 | | ||||||||||||||||||||||||
LB I Group Inc. |
| | | | | | | (292 | ) | |||||||||||||||||||||||
Pami ALI LLC |
| (174 | ) | 292 | | | | (2 | ) | | ||||||||||||||||||||||
Other |
| (0 | ) | 28 | (25 | ) | (0 | ) | 0 | 3 | (1,574 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Debtor-Controlled Entities |
$ | 45 | $ | (174 | ) | $ | 319 | $ | (25 | ) | $ | (0 | ) | $ | (45 | ) | $ | 393 | $ | (1,866 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total |
$ | 45 | $ | (2,108 | ) | $ | 319 | $ | (2,696 | ) | $ | (0 | ) | $ | (830 | ) | $ | 395 | $ | (4,767 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Non-Controlled Affiliates: (2) |
||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Intermediate 2 Ltd |
$ | | $ | | $ | | $ | | $ | | $ | | $ | 1,101 | $ | | ||||||||||||||||
LB UK RE Holdings Limited |
| | | | 7 | | | | ||||||||||||||||||||||||
Other |
0 | | 0 | (1 | ) | | | 138 | (26 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total |
$ | 0 | $ | | $ | 0 | $ | (1 | ) | $ | 7 | $ | | $ | 1,239 | $ | (26 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | Due from balances at Other Debtor-Controlled Entities are related to receivables recorded by Pami ALI LLC. |
(2) | Certain Due from balances are recorded in the local currency of the respective Non-Controlled Affiliates and as a result, balances may fluctuate as a result of changes in foreign exchange rates. Due from/to Affiliates balances include both settled and unresolved balances with Non-Controlled Affiliates. |
Page 16
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates
The table below presents the Due from/to Non-Controlled Affiliates balances as of April 5, 2018, and the related activity since the previously filed Quarterly Financial Report as of December 31, 2017:
Activity 1/1/18 - 4/5/18 | ||||||||||||||||||||||||
$ in millions | As of December 31, 2017 |
Cash Receipts |
Cash Distributions |
Claim Assignments (1) |
Other (2) | As of April 5, 2018 |
||||||||||||||||||
Due From Non-Controlled |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 16,864 | $ | (118 | ) | $ | | $ | 4 | $ | 448 | $ | 17,198 | |||||||||||
Lehman Commercial Paper Inc. |
135 | | | | (1 | ) | 134 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
684 | (5 | ) | | | (0 | ) | 679 | ||||||||||||||||
Other Debtors |
265 | (11 | ) | | | (6 | ) | 249 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
17,949 | (134 | ) | | 4 | 441 | 18,260 | |||||||||||||||||
Debtor-Controlled |
139 | | | | 1,107 | 1,246 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Due From Controlled |
$ | 18,088 | $ | (134 | ) | $ | | $ | 4 | $ | 1,548 | $ | 19,506 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Due To Non-Controlled (3) |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 32,214 | $ | | $ | (196 | ) | $ | (148 | ) | $ | (63 | ) | $ | 31,807 | |||||||||
Lehman Commercial Paper Inc. |
490 | | | | (28 | ) | 463 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
930 | | (5 | ) | (140 | ) | (2 | ) | 784 | |||||||||||||||
Other Debtors |
1 | | (0 | ) | | 0 | 1 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
33,636 | | (201 | ) | (288 | ) | (92 | ) | 33,054 | |||||||||||||||
Debtor-Controlled |
27 | | | | 0 | 28 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
$ | 33,663 | $ | | $ | (201 | ) | $ | (288 | ) | $ | (92 | ) | $ | 33,082 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Claim Assignments, net of distributions, primarily includes (i) the purchase by LBHI of $148 million of claims against LBHI from Lehman Brothers Japan Inc., Lehman Brothers Holdings Japan Inc., Lehman Brothers Commercial Mortgage, and Sunrise Finance; and (ii) the purchase by LBHI of $140 million of claims against LBSF from Lehman Brothers Japan Inc. and Sunrise Finance. |
(2) | Other includes (i) estimated recoveries on the SLP3 Sub Rec; (ii) estimated recoveries on statutory interest on LBIE claims and LBHI2 claim; and (iii) the positive impact of movements in foreign exchange rates of approximately $260 million, partially offset by the write off of $167 million related to the receipt of distributions from Bankhaus and Lehman Brothers Japan Inc. |
(3) | Due to Non-Controlled balances from Debtors are included in Liabilities Subject to Compromise herein. |
Page 17
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
The following table presents a summary of Due from/to Non-Controlled Affiliates for Debtors as of April 5, 2018:
LBHI | LBSF | LCPI | Other Debtors | Total Debtors | ||||||||||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Treasury Co B.V. (1) |
$ | 2,084 | $ | (22,166 | ) | $ | 650 | $ | | $ | | $ | | $ | 102 | $ | | $ | 2,836 | $ | (22,166 | ) | ||||||||||||||||||
Lehman Brothers Finance S.A. |
8,980 | (679 | ) | | | | | | | 8,980 | (679 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Bankhaus A.G. |
0 | | | 0 | | | (0 | ) | | (0 | ) | 0 | ||||||||||||||||||||||||||||
LB UK RE Holdings Limited |
673 | | | | | | | | 673 | | ||||||||||||||||||||||||||||||
Lehman Brothers (Luxembourg) S.A. |
356 | | | | | | | | 356 | | ||||||||||||||||||||||||||||||
Thayer Properties Limited |
183 | | | | | (0 | ) | | | 183 | (0 | ) | ||||||||||||||||||||||||||||
LB (PTG) Ltd |
116 | | | | | | | | 116 | | ||||||||||||||||||||||||||||||
LB Lease & Finance No.1 Ltd |
0 | | | | | | | | 0 | | ||||||||||||||||||||||||||||||
LB (Luxembourg) Equity Finance S.A |
35 | | | | | | | | 35 | | ||||||||||||||||||||||||||||||
Longmeade Limited |
8 | | | | | (23 | ) | | | 8 | (23 | ) | ||||||||||||||||||||||||||||
LB RE Financing No.2 Limited |
0 | | | | | | | | 0 | | ||||||||||||||||||||||||||||||
Lehman Brothers Limited |
| (234 | ) | | (2 | ) | | (1 | ) | | (0 | ) | | (237 | ) | |||||||||||||||||||||||||
Lehman Brothers International (Europe) (2) |
389 | (662 | ) | | (527 | ) | | | | | 389 | (1,189 | ) | |||||||||||||||||||||||||||
Eldon Street Holdings Limited |
| (415 | ) | | | | (0 | ) | | (0 | ) | | (415 | ) | ||||||||||||||||||||||||||
LB RE Financing No.3 Limited |
457 | | | | | | | | 457 | | ||||||||||||||||||||||||||||||
LB Holdings Intermediate 2 Ltd |
| (198 | ) | | | | | | | | (198 | ) | ||||||||||||||||||||||||||||
Wood Street Investments Ltd |
| (178 | ) | | | | | | | | (178 | ) | ||||||||||||||||||||||||||||
Storm Funding Ltd |
| (96 | ) | | (3 | ) | | (33 | ) | | | | (132 | ) | ||||||||||||||||||||||||||
Asia |
||||||||||||||||||||||||||||||||||||||||
Sunrise Finance Co. Ltd |
1,023 | | | | | | | | 1,023 | | ||||||||||||||||||||||||||||||
LB Commercial Corp. Asia Limited |
764 | | | | | (1 | ) | | | 764 | (1 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Holdings Japan Inc. |
861 | | | | | | | | 861 | | ||||||||||||||||||||||||||||||
LB Asia Pacific (Singapore) PTE |
270 | | | | | | | | 270 | | ||||||||||||||||||||||||||||||
Lehman Brothers Japan Inc. |
0 | | | | | | (0 | ) | | (0 | ) | | ||||||||||||||||||||||||||||
LB Asia Capital Company |
341 | | 29 | | 132 | | 147 | | 648 | | ||||||||||||||||||||||||||||||
LB Investments PTE Ltd |
254 | | | | | | | | 254 | | ||||||||||||||||||||||||||||||
LB Securities Asia Limited |
0 | (10 | ) | | | | | | | 0 | (10 | ) | ||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||
Claims held by third parties (3) |
| (7,064 | ) | | (183 | ) | | (385 | ) | | (0 | ) | | (7,632 | ) | |||||||||||||||||||||||||
Other |
403 | (105 | ) | 0 | (68 | ) | 2 | (20 | ) | | (1 | ) | 406 | (194 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 17,198 | $ | (31,807 | ) | $ | 679 | $ | (784 | ) | $ | 134 | $ | (463 | ) | $ | 249 | $ | (1 | ) | $ | 18,260 | $ | (33,054 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | LBT is included in the defined term Non-Controlled Affiliates, but LBHI has no direct or indirect equity interest in LBT. |
(2) | LBHI owns allowed claims against LBIE in the aggregate face amount of £644 million. |
Page 18
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
(3) | Claims held by third parties represent claims against Debtors, net of distributions, originally held by Non-Controlled Affiliates, according to their respective settlement agreements with the Company, that are currently held by third parties, including: |
($ in millions) | ||||||||||||||||
Original creditor | LBHI | LBSF | LCPI | Total | ||||||||||||
Lehman Brothers Bankhaus A.G. |
$ (4,806 | ) | $ (104 | ) | $ (257 | ) | $ (5,166 | ) | ||||||||
Lehman Brothers Securities NV |
(493 | ) | (44 | ) | | (537 | ) | |||||||||
Storm Funding Ltd |
(511 | ) | | | (511 | ) | ||||||||||
LB Asia Capital Company |
(398 | ) | | | (398 | ) | ||||||||||
Lehman Re Limited |
(278 | ) | (15 | ) | (87 | ) | (381 | ) | ||||||||
LB Securities Asia Limited |
(126 | ) | | | (126 | ) | ||||||||||
Lehman Brothers Asia Limited |
(119 | ) | | | (119 | ) | ||||||||||
Lehman Brothers Futures Asia Limited |
(56 | ) | | | (56 | ) | ||||||||||
Lehman Brothers Asia Holdings Limited |
| (21 | ) | (41 | ) | (62 | ) | |||||||||
LB (Luxembourg) Equity Finance S.A. |
(84 | ) | | | (84 | ) | ||||||||||
Lehman Brothers International (Europe) |
(54 | ) | | | (54 | ) | ||||||||||
Other |
(139 | ) | | | (139 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Claims held by third parties |
$ | (7,064 | ) | $ | (183 | ) | $ | (385 | ) | $ | (7,632 | ) | ||||
|
|
|
|
|
|
|
|
The following table presents, on an aggregate basis for Debtors and Debtor-Controlled Entities, admitted claims (including statutory interest paid to date), collections to date from Non-Controlled Affiliates, and aggregate estimated remaining recoveries (including statutory interest):
Estimated Recoveries (5) | ||||||||||||||||||||||||||||||||||||||||
$ in millions | Local Currency |
Admitted Claims in Local Currency |
Collections To Date in Local Currency (3) |
Admitted and Unsettled Filed Claims in USD (4) |
Collections To Date in USD (3) |
Net Receivables in USD |
LBHI | Other Debtors |
Debtor- Controlled Entities |
Total | ||||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Finance S.A. |
CHF | 10,153 | (1,521 | ) | 10,558 | (1,579 | ) | 8,980 | ||||||||||||||||||||||||||||||||
Lehman Brothers Treasury Co B.V. |
USD | 4,342 | (1,619 | ) | 4,342 | (1,619 | ) | 2,723 | ||||||||||||||||||||||||||||||||
Lehman Brothers Treasury Co B.V. (1) |
Various | | | 113 | | 113 | ||||||||||||||||||||||||||||||||||
LB UK RE Holdings Limited |
GBP | 1,188 | (702 | ) | 1,664 | (983 | ) | 680 | ||||||||||||||||||||||||||||||||
Lehman Brothers (Luxembourg) S.A. |
EUR | 759 | (468 | ) | 929 | (573 | ) | 356 | ||||||||||||||||||||||||||||||||
Lehman Brothers International (Europe) |
GBP | 646 | (646 | ) | 1,299 | (908 | ) | 391 | ||||||||||||||||||||||||||||||||
LB RE Financing No. 3 Limited |
GBP | 353 | (27 | ) | 495 | (38 | ) | 457 | ||||||||||||||||||||||||||||||||
LB Commercial Mortgage Conduit Ltd |
GBP | 240 | (222 | ) | 336 | (311 | ) | 25 | ||||||||||||||||||||||||||||||||
Thayer Properties Limited |
GBP | 172 | (41 | ) | 240 | (57 | ) | 183 | ||||||||||||||||||||||||||||||||
LB (PTG) Ltd |
GBP | 170 | (87 | ) | 238 | (122 | ) | 116 | ||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Plc |
GBP | 57 | (26 | ) | 80 | (37 | ) | 44 | ||||||||||||||||||||||||||||||||
LB (Luxembourg) Equity Finance S.A |
EUR | 96 | (67 | ) | 117 | (82 | ) | 35 | ||||||||||||||||||||||||||||||||
Longmeade Limited |
GBP | 43 | (18 | ) | 60 | (25 | ) | 35 | ||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Intermediate 2 Ltd |
GBP | 658 | (658 | ) | 2,022 | (921 | ) | 1,101 | ||||||||||||||||||||||||||||||||
Other |
300 | (162 | ) | 138 | ||||||||||||||||||||||||||||||||||||
Recoveries of Prior Guarantee Distributions (2) |
| | | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total Europe |
34,523 | (19,146 | ) | 15,377 | 1,511 | 21 | 1,056 | 2,588 | ||||||||||||||||||||||||||||||||
Asia |
||||||||||||||||||||||||||||||||||||||||
Sunrise Finance Co. Ltd |
JPY | 234,022 | (124,126 | ) | 2,178 | (1,155 | ) | 1,023 | ||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Japan Inc. |
JPY | 178,617 | (86,155 | ) | 1,662 | (802 | ) | 861 | ||||||||||||||||||||||||||||||||
LB Asia Capital Company |
HKD | 6,398 | (1,312 | ) | 815 | (167 | ) | 648 | ||||||||||||||||||||||||||||||||
LB Asia Pacific (Singapore) PTE |
USD | 621 | (352 | ) | 621 | (352 | ) | 269 | ||||||||||||||||||||||||||||||||
LB Commercial Corp. Asia Limited |
HKD | 14,769 | (8,771 | ) | 1,882 | (1,117 | ) | 764 | ||||||||||||||||||||||||||||||||
LB Investments PTE Ltd |
USD | 543 | (289 | ) | 543 | (289 | ) | 254 | ||||||||||||||||||||||||||||||||
GKI Development Inc. |
KRW | 103,363 | (91,427 | ) | 98 | (86 | ) | 11 | ||||||||||||||||||||||||||||||||
Lehman Brothers Australia Ltd |
AUD | 111 | (66 | ) | 85 | (51 | ) | 34 | ||||||||||||||||||||||||||||||||
Sail Investor PTE Ltd |
USD | 63 | (60 | ) | 63 | (60 | ) | 3 | ||||||||||||||||||||||||||||||||
Other |
11,159 | (10,898 | ) | 261 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total Asia |
22,455 | (18,326 | ) | 4,129 | 155 | 1 | 0 | 157 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total |
$ | 56,977 | $ | (37,472 | ) | $ | 19,506 | $ | 1,667 | $ | 22 | $ | 1,056 | $ | 2,745 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Page 19
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
(1) | Represents claims against LBT that were admitted in eight different currencies. |
(2) | The Company expects certain Allowed Guarantee Claims against LBHI to be deemed satisfied in full based on future distributions or other consideration received by a creditor on the corresponding primary claims by the underlying primary obligor (refer to Note 11 Liabilities Subject to Compromise for additional information). |
(3) | Collections to Date in Local Currency and Collections to Date in USD include distributions received on the claims prior to the assignments of the claims to LBHI and Debtor-Controlled Entities. |
(4) | Admitted and Unsettled Filed Claims in USD includes estimated recoveries on subordinated receivables and statutory interest. |
(5) | Refer to Basis of Presentation in section IV. PostFifteenth Distribution Cash Flow Estimates herein for further information on the estimated recoveries from Non-Controlled Affiliates. |
(6) | Other claims against Lehman Brothers Finance S.A., Bankhaus, LBT and LBIE, acquired through settlements with third parties are included in Affiliate Claims receivables in the Balance Sheets (refer to Note 6 Receivables from Debtors and Debtors-Controlled Entities and Other Assets for additional information). |
Page 20
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 8 Due from/to Affiliates (continued)
Page 21
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 9 Payables to Debtors and Debtor-Controlled Entities and Other Liabilities
Payables to Debtors and Debtor-Controlled Entities and Other Liabilities includes: (i) $176 million related to certain post-petition activities between and among Debtors and Debtor-Controlled Entities, with the corresponding assets reflected in Receivables from Debtors and Debtor-Controlled Entities and Other Assets and (ii) $93 million of other liabilities.
The following table summarizes the main components of Payables to Debtors and Debtor-Controlled Entities and Other Liabilities as of April 5, 2018:
Debtors | Debtor- | Total Debtors and Debtor- |
||||||||||||||||||||||||||
$ in millions | LBHI | LCPI | LBSF | Other Debtors |
Total | Controlled Entities |
Controlled Entities |
|||||||||||||||||||||
Secured Notes (1) |
69 | 42 | | | 111 | | 111 | |||||||||||||||||||||
Fundings and other activities (2) |
12 | 4 | 14 | 10 | 40 | 25 | 66 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Payables to Controlled Affiliates |
81 | 46 | 14 | 10 | 151 | 25 | 176 | |||||||||||||||||||||
Distributions on Allowed Claims (not remitted) |
4 | 0 | 0 | 0 | 4 | | 4 | |||||||||||||||||||||
Other |
18 | 9 | 0 | 1 | 28 | 61 | 89 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Other Liabilities |
22 | 9 | 0 | 1 | 32 | 61 | 93 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Payables to Controlled Affiliates and other liabilities |
$ | 103 | $ | 55 | $ | 14 | $ | 11 | $ | 183 | $ | 86 | $ | 269 | ||||||||||||||
|
|
|
|
|
|
Refer to Note 6 - Receivables from Debtors and Debtor-Controlled Entities and Other Assets for footnote 1 through 2 explanations.
Page 22
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Page 23
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 11 Liabilities Subject to Compromise
The Company has excluded from these Balance Sheets any estimates of the unresolved claims to be allowed, as the majority of these claims are subject to litigation. As a result, the estimates as of December 31, 2017 for unresolved claims to be allowed, excluding post-petition interest, were reduced in these Balance Sheets by approximately $331 million, primarily related to LBHI.
The table below presents the Allowed Claims activity by Debtor and by Class:
$ in millions | Activity during period ended April 5, 2018 |
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Debtor / Class |
Allowed Claims at December 31, 2017 (1) (2) |
Allowed Claims |
Claims Satisfied in Full & Other (3) |
Allowed Claims at April 5, 2018 (2) (4) |
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Lehman Brothers Holdings Inc. |
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3 | Senior Unsecured |
$ | 83,744 | $ | | $ | | $ | 83,744 | |||||||||||
4A | Senior Affiliate Claims |
58,816 | | | 58,816 | |||||||||||||||
4B | Senior Affiliate Guarantee |
10,991 | | | 10,991 | |||||||||||||||
5 | Senior Third-Party Guarantee |
32,787 | | (795 | ) | 31,991 | ||||||||||||||
7 | General Unsecured |
3,418 | 2,392 | (0 | ) | 5,809 | ||||||||||||||
8 | Affiliate Claims |
502 | | (5 | ) | 498 | ||||||||||||||
9A | Third Party Guarantee Claims other than of the RACERS Trusts |
19,151 | | | 19,151 | |||||||||||||||
9B | Third Party Guarantee Claims of the RACERS Trusts |
1,948 | | | 1,948 | |||||||||||||||
10A | Subordinated Class 10A Claims |
3,399 | | | 3,399 | |||||||||||||||
10B | Subordinated Class 10B Claims |
10,330 | | | 10,330 | |||||||||||||||
10C | Subordinated Class 10C Claims |
1,493 | | | 1,493 | |||||||||||||||
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Total |
$ | 226,579 | $ | 2,392 | $ | (800 | ) | $ | 228,171 | |||||||||||
Lehman Commercial Paper Inc. |
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4A | General Unsecured Claims other than those of Designated Entities |
$ | 1,539 | $ | | $ | | $ | 1,539 | |||||||||||
4B | General Unsecured Claims of Designated Entities |
5,230 | | | 5,230 | |||||||||||||||
5A | Affiliate Claims of LBHI |
13,738 | | | 13,738 | |||||||||||||||
5B | Affiliate Claims of Participating Subsidiary Debtors |
5 | | | 5 | |||||||||||||||
5C | Affiliate Claims other than those of Participating Subsidiary Debtors |
5,127 | | | 5,127 | |||||||||||||||
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Total |
$ | 25,639 | $ | | $ | | $ | 25,639 | ||||||||||||
Lehman Brothers Special Financing Inc. |
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4A | General Unsecured Claims other than those of Designated Entities |
$ | 19,474 | $ | | $ | (0 | ) | $ | 19,474 | ||||||||||
4B | General Unsecured Claims of Designated Entities |
1,948 | | | 1,948 | |||||||||||||||
5A | Affiliate Claims of LBHI |
15,173 | | | 15,173 | |||||||||||||||
5B | Affiliate Claims of Participating Subsidiary Debtors |
522 | | | 522 | |||||||||||||||
5C | Affiliate Claims other than those of Participating Subsidiary Debtors |
1,689 | | | 1,689 | |||||||||||||||
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Total |
$ | 38,805 | $ | | $ | (0 | ) | $ | 38,804 | |||||||||||
Lehman Brothers Commodity Services Inc. |
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4 | General Unsecured Claims |
$ | 2,087 | $ | | $ | | $ | 2,087 | |||||||||||
5A | Affiliate Claims of LBHI |
918 | | | 918 | |||||||||||||||
5B | Affiliate Claims of Participating Subsidiary Debtors |
| | | | |||||||||||||||
5C | Affiliate Claims other than those of Participating Subsidiary Debtors |
20 | | | 20 | |||||||||||||||
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Total |
$ | 3,025 | $ | | $ | | $ | 3,025 | ||||||||||||
BNC Mortgage LLC |
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3 | General Unsecured Claims |
$ | 3 | $ | | $ | | $ | 3 | |||||||||||
4A | Affiliate Claims of LBHI |
| | | | |||||||||||||||
4B | Affiliate Claims other than those of LBHI |
1 | | | 1 | |||||||||||||||
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Total |
$ | 4 | $ | | $ | | $ | 4 | ||||||||||||
Structured Asset Securities Corporation |
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3 | General Unsecured Claims |
$ | 19 | $ | 1 | $ | | $ | 20 | |||||||||||
4A | Affiliate Claims of LBHI |
469 | | | 469 | |||||||||||||||
4B | Affiliate Claims other than those of LBHI |
0 | | | 0 | |||||||||||||||
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Total |
$ | 489 | $ | 1 | $ | | $ | 489 |
(1) | The table below presents a reconciliation of the amounts of Allowed Claims per the Balance Sheets at December 31, 2017 to the Allowed Claims by class at December 31, 2107 per the above schedule: |
$ in billions |
LBHI | LCPI | LBSF | Other Debtors |
Total Debtors |
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Total Allowed Claims per the Balance Sheets as of December 31, 2017 |
$ | 241.0 | $ | 29.9 | $ | 42.0 | $ | 8.4 | $ | 321.2 | ||||||||||
Claims Satisfied in Full and Other |
(14.5 | ) | (0.1 | ) | (0.2 | ) | (4.0 | ) | (18.8 | ) | ||||||||||
Intercompany Funding Adjustment |
| (4.1 | ) | (2.9 | ) | (0.8 | ) | (7.9 | ) | |||||||||||
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Total Allowed Claims per schedule above as of December 31, 2017 |
$ | 226.6 | $ | 25.6 | $ | 38.8 | $ | 3.6 | $ | 294.6 | ||||||||||
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(2) | Represents claims that were eligible for distributions. |
Page 24
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 11 Liabilities Subject to Compromise (continued)
(3) | Represents allowed claims that were satisfied in full primarily through the combination of distributions from the primary obligor and guarantee distributions from LBHI. If an Allowed Guarantee Claim receives Distributions from LBHI combined with distributions or other consideration provided on account of the corresponding Primary Claim that exceed the amount of the Allowed Guarantee Claim, LBHI reserves the right to recover Distributions from LBHI in excess of the Allowed Guarantee Claim (Prior Guarantee Distributions). The Company has included its estimates for recoveries of Prior Guarantee Distributions from Non-Controlled Affiliates in the Post-D15 Cash Flow Estimates as Recoveries from Non-Controlled Affiliates. LBHI will continue to monitor Allowed Guarantee Claims that may become satisfied through subsequent distributions. This column also includes previously allowed claims that have been reclassified or withdrawn. |
(4) | LBHI is the holder of Allowed Claims against itself of approximately $21.1 billion, including: $1.2 billion of Class 3 Claims, $15.9 billion of Class 4A Claims, $0.4 billion of Class 4B Claims, $0.6 billion of Class 7 Claims, $1.0 billion of Class 9A Claims, and $1.9 billion of Class 9B Claims. |
The table below presents the remaining Disputed Claims by Debtor, by Class and by Primary Obligor as of April 5, 2018:
$ in millions | ||||||||||||||||||||||||
Debtor/Class |
Total Number of Filed Claims |
Number of Unliquidated Claims |
Total Filed Amount |
Estimate of Disputed Claims for Reserve Purposes (2) |
Total Cash Reserves for Disputed Claims |
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Lehman Brothers Holdings Inc. |
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Administrative |
4 | 4 | $ | | $ | | $ | | ||||||||||||||||
1 | Priority Non-Tax |
1 | 1 | | | | ||||||||||||||||||
2 | Secured |
3 | 3 | 6 | | | ||||||||||||||||||
4A | Senior Affiliate Claims |
1 | 1 | | | | ||||||||||||||||||
5 | Senior Third-Party Guarantee (1) |
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LB UK Capital Funding II |
1 | | 0 | 0 | 0 | |||||||||||||||||||
LBIE |
1 | | 8 | 5 | 0 | |||||||||||||||||||
7 | General Unsecured |
4 | 2 | 1,115 | 163 | 28 | ||||||||||||||||||
9A | Third Party Guarantee other than of the RACERS Trusts (1) |
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LBCS |
2 | | 72 | 72 | 6 | |||||||||||||||||||
LBF |
2 | 1 | 62 | 62 | 5 | |||||||||||||||||||
LBIE |
95 | 1 | 1,944 | 1,143 | 48 | |||||||||||||||||||
LBSF |
53 | 39 | 1,090 | 929 | 76 | |||||||||||||||||||
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Total |
167 | 52 | 4,298 | 2,374 | 163 | |||||||||||||||||||
Lehman Brothers Special Financing Inc. |
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Administrative |
2 | 2 | $ | | $ | | $ | | ||||||||||||||||
4A | General Unsecured Claims other than those of Designated Entities |
53 | 26 | 1,085 | 924 | 363 | ||||||||||||||||||
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Total |
55 | 28 | $ | 1,085 | $ | 924 | $ | 363 | ||||||||||||||||
Lehman Brothers Commercial Corporation |
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4 | General Unsecured Claims |
2 | | $ | 29 | $ | 29 | $ | 32 | |||||||||||||||
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Total |
2 | | $ | 29 | $ | 29 | $ | 32 | ||||||||||||||||
BNC Mortgage LLC |
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3 | General Unsecured Claims |
8 | 2 | $ | 27 | $ | 27 | $ | | |||||||||||||||
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Total |
8 | 2 | $ | 27 | $ | 27 | $ | | ||||||||||||||||
Structured Asset Securities Corporation |
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Administrative |
1 | 1 | $ | | $ | | $ | | ||||||||||||||||
3 | General Unsecured Claims |
1 | | 928 | | | ||||||||||||||||||
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Total |
2 | 1 | $ | 928 | $ | | $ | | ||||||||||||||||
Lehman Brothers Commodity Services Inc. |
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4 | General Unsecured Claims |
2 | | $ | 72 | $ | 72 | $ | 68 | |||||||||||||||
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Total |
2 | | $ | 72 | $ | 72 | $ | 68 |
(1) | The Disputed Claim is the result of a direct obligation of the Debtor or a guarantee related to the primary obligor. |
(2) | Certain Claims have been estimated at less than filed amounts, as agreed to through a stipulation or settlement agreement or pursuant to Court order and does not include estimates for unliquidated Claims. |
Page 25
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 11 Liabilities Subject to Compromise (continued)
Page 26
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 12 Legal Proceedings
The Company is involved in or will be impacted by a number of judicial, regulatory and mediation proceedings concerning matters arising in connection with the bankruptcy proceedings and various other matters, including the proceedings listed below. The Company is unable at this time to determine the financial impact such proceedings may have on any potential recoveries or liabilities. As more information becomes available, the Company may record revisions, which may be material, in future Balance Sheets.
Affirmative litigations:
Counterparty | Debtor(s) | Commenced | Court | Court Reference | Most Recent Disclosure | |||||
Mortgage Sellers | LBHI | Various | Various | Various | (a) | |||||
Bank of America National Association et al. (SPV Avoidance Actions) |
LBSF | September 2010 | Bankruptcy Court | 10-03547 (SCC) | (b) | |||||
Credit Suisse Group AG | LBHI, LBSF LBCS, LBCC |
November 2013 | Bankruptcy Court | 13-01676 (SCC) | (c) | |||||
Ballyrock ABS CDO 2007-1 Limited Wells Fargo Bank N.A. (Ballyrock Litigation) |
LBSF | February 2009 | Bankruptcy Court | 09-01032 (SCC) | March 31, 2012 Balance Sheets - Docket No. 29731 | |||||
Other litigations: |
Counterparty | Controlled Entities Party to Litigation |
Debtor(s) Potentially Impacted by Litigation |
Court | Most Recent Disclosure | ||||
ECAPs | LBHI SLP3 |
LBHI | UK Court Bankruptcy Court |
(d) | ||||
Lehman Brothers International (Europe) (in administration) (LBIE Waterfall Applications) |
LBHI | LBHI LBCS LCPI |
Not applicable | (e) | ||||
Guarantee Claims For Which LBIE Is The Primary Obligor | LBHI | LBHI | Bankruptcy Court | (f) | ||||
LBIE Other | None | LBHI | Various | (g) | ||||
LBF Guarantee - Tschira | None | LBHI | Swiss Court UK Court |
(h) | ||||
LBF Guarantee - Enasarco | None | LBHI | Swiss Court | (i) | ||||
Stender | None | LCPI | United States Court of Appeals for the Tenth Circuit | (j) | ||||
RMBS Trustees Claims | LBHI SASCO |
LBHI | Bankruptcy Court | (k) |
Page 27
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 12 Legal Proceedings (continued)
Page 28
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 12 Legal Proceedings (continued)
Page 29
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note | 12 Legal Proceedings (continued) |
Page 30
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Note 12 Legal Proceedings (continued)
Page 31
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Page 32
Quarterly Financial Report as of April 5, 2018 (Unaudited)
III. Balance Sheets
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of April 5, 2018
(Unaudited)
($ in millions) | Lehman Brothers Holdings Inc. 08-13555 |
Lehman Brothers Special Financing Inc. 08-13888 |
Lehman Brothers Commodity Services Inc. 08-13885 |
Lehman Brothers Commercial Corporation 08-13901 |
Lehman Brothers OTC Derivatives Inc. 08-13893 |
Lehman Brothers Financial Products Inc. 08-13902 |
Lehman Brothers Derivative Products Inc. 08-13899 |
Lehman Commercial Paper Inc. 08-13900 |
Luxembourg Residential Properties Loan Finance S.a.r.l. 09-10108 |
Other Debtors (2) |
Total Debtor Entities (1) |
Total Debtor- Controlled Entities (3) |
Total Company |
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Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets |
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Cash and short-term investments |
$ | 31 | $ | 14 | $ | 4 | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 4 | $ | | $ | 10 | $ | 64 | $ | 95 | $ | 159 | ||||||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
402 | 424 | 72 | 36 | 1 | 0 | 0 | 16 | | 6 | 957 | 32 | 989 | |||||||||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
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Commercial Real Estate |
(0 | ) | 0 | | | | | | 48 | | | 48 | 12 | 59 | ||||||||||||||||||||||||||||||||||||||
Residential Real Estate and Other |
11 | | | | | | | 15 | | | 26 | 0 | 26 | |||||||||||||||||||||||||||||||||||||||
Principal investments |
3 | | | | | | | 0 | | | 3 | 85 | 88 | |||||||||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| 67 | | | | | | | | | 67 | 0 | 67 | |||||||||||||||||||||||||||||||||||||||
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Total Financial instruments and other inventory positions |
13 | 67 | | | | | | 63 | | | 144 | 97 | 241 | |||||||||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
375 | 9 | (0 | ) | 42 | 0 | | | 0 | | 4 | 430 | 92 | 522 | ||||||||||||||||||||||||||||||||||||||
Investments in Affiliates: |
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Controlled Entities |
(26,953 | ) | (6 | ) | | | | | | (49 | ) | | 136 | (26,872 | ) | (18,889 | ) | (45,761 | ) | |||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
78 | | | | | | | | | | 78 | | 78 | |||||||||||||||||||||||||||||||||||||||
Due from Affiliates: |
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Debtors and Debtor- Controlled Entities |
19,555 | 362 | | | | | | 6,720 | | | 26,637 | 0 | 26,637 | |||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
17,198 | 679 | 102 | 147 | | | | 134 | | | 18,260 | 1,246 | 19,506 | |||||||||||||||||||||||||||||||||||||||
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Total Due from Affiliates |
36,753 | 1,041 | 102 | 147 | | | | 6,854 | | | 44,897 | 1,246 | 46,142 | |||||||||||||||||||||||||||||||||||||||
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Total Assets |
$ | 10,700 | $ | 1,549 | $ | 178 | $ | 226 | $ | 1 | $ | 0 | $ | 0 | $ | 6,888 | $ | | $ | 155 | $ | 19,698 | $ | (17,326 | ) | $ | 2,372 | |||||||||||||||||||||||||
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Liabilities and Stockholders Equity Liabilities |
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Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 103 | $ | 14 | $ | 1 | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 55 | $ | | $ | 8 | $ | 183 | $ | 86 | $ | 269 | ||||||||||||||||||||||||||
Due to Affiliates: |
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Debtor-Controlled Entities |
$ | 0 | | | | | | | | | | 0 | 9,642 | 9,642 | ||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | | | | | | 28 | 28 | |||||||||||||||||||||||||||||||||||||||
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Total Due to Affiliates |
0 | | | | | | | | | | 0 | 9,669 | 9,669 | |||||||||||||||||||||||||||||||||||||||
Taxes Payable |
132 | | 3 | 0 | | | 0 | 5 | | | 140 | 2 | 142 | |||||||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
139,385 | 22,856 | 180 | 1 | (0 | ) | | | 4,495 | | 58 | 166,975 | 0 | 166,975 | ||||||||||||||||||||||||||||||||||||||
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Total Liabilities |
139,620 | 22,870 | 184 | 3 | 0 | 0 | 0 | 4,554 | | 66 | 167,297 | 9,757 | 177,055 | |||||||||||||||||||||||||||||||||||||||
Stockholders Equity |
(128,921 | ) | (21,321 | ) | (6 | ) | 223 | 1 | 0 | 0 | 2,334 | | 90 | (147,599 | ) | (27,084 | ) | (174,683 | ) | |||||||||||||||||||||||||||||||||
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Total Liabilities and Stockholders Equity |
$ | 10,700 | $ | 1,549 | $ | 178 | $ | 226 | $ | 1 | $ | 0 | $ | 0 | $ | 6,888 | $ | | $ | 155 | $ | 19,698 | $ | (17,326 | ) | $ | 2,372 | |||||||||||||||||||||||||
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See accompanying Notes to Balance Sheets
Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) | Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries. |
(2) | Other Debtors Balance Sheets are presented on page 34. |
(3) | Certain Debtor-Controlled Entities Balance Sheets are presented on page 35. |
Page 33
Quarterly Financial Report as of April 5, 2018 (Unaudited)
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of April 5, 2018 (Certain Other Debtors)
(Unaudited)
($ in millions) | Structured Asset Securities |
East Dover Ltd 08-13908 |
Lehman Scottish Finance LP 08-13904 |
LB Rose Ranch 09-10560 |
BNC Mortgage 09-10137 |
Other Debtors (1) |
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Assets |
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Cash and short-term investments |
$ | 0 | $ | | $ | | $ | | $ | 10 | $ | 10 | ||||||||||||
Cash and short-term investments pledged or restricted |
4 | | | | 2 | 6 | ||||||||||||||||||
Financial instruments and other inventory positions: |
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Commercial Real Estate |
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Residential Real Estate and Other |
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Principal investments |
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Derivative Receivables and Related Assets |
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Total Financial instruments and other inventory positions |
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Receivables from Debtors and Debtor-Controlled Entities and other assets |
| 0 | 2 | 2 | | 4 | ||||||||||||||||||
Investments in Affiliates |
| | 136 | | | 136 | ||||||||||||||||||
Due from Affiliates: |
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Debtors and Debtor- Controlled Entities |
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Non-Controlled Affiliates |
| | | | | 0 | ||||||||||||||||||
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Total Due from Affiliates |
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Total Assets |
$ | 4 | $ | 0 | $ | 137 | $ | 2 | $ | 12 | $ | 155 | ||||||||||||
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Liabilities and Stockholders Equity Liabilities |
||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 4 | $ | 0 | $ | 2 | $ | | $ | 2 | $ | 8 | ||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||
Debtor-Controlled Entities |
| | | | | | ||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Due to Affiliates |
| | | | | | ||||||||||||||||||
Taxes Payable |
| | | | | | ||||||||||||||||||
Liabilities Subject to Compromise |
55 | | | | 3 | 58 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Liabilities |
58 | 0 | 2 | | 5 | 66 | ||||||||||||||||||
Stockholders Equity |
(54 | ) | 0 | 135 | 2 | 7 | 90 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Liabilities and Stockholders Equity |
$ | 4 | $ | 0 | $ | 137 | $ | 2 | $ | 12 | $ | 155 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
See accompanying Notes to Balance Sheets |
Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries.
Page 34
Quarterly Financial Report as of April 5, 2018 (Unaudited)
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of April 5, 2018 (Debtor-Controlled Entities)
(Unaudited)
($ in millions) | Lehman ALI Inc. (2) |
Property Asset Management Inc. (3) |
LB I Group Inc. (3) |
Lehman Brothers Bancorp Inc. (3) |
PAMI Holdings LLC |
314 Common- wealth Ave Inc. (3) |
PAMI ALI LLC |
Lux Finance Sarl |
Other Debtor- Controlled Entities |
Debtor - Controlled Group Elims (1) |
Total Debtor- Controlled Entities |
|||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 0 | $ | 2 | $ | 1 | $ | 49 | $ | 1 | $ | 0 | $ | 1 | $ | 1 | $ | 41 | $ | | $ | 95 | ||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
(0 | ) | 0 | 9 | 2 | | | 0 | | 22 | | 32 | ||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
| 3 | | | (0 | ) | (0 | ) | 7 | | 2 | | 12 | |||||||||||||||||||||||||||||||
Residential Real Estate and Other |
| 0 | 0 | | | | | | | | 0 | |||||||||||||||||||||||||||||||||
Principal investments |
0 | | 16 | | | | 0 | | 69 | | 85 | |||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| | | | | | | | 0 | | 0 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Financial instruments and other inventory positions |
0 | 3 | 16 | | (0 | ) | (0 | ) | 7 | | 70 | | 97 | |||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
1 | 0 | 3 | 70 | 0 | 0 | 1 | | 42 | (25 | ) | 92 | ||||||||||||||||||||||||||||||||
Investments in Affiliates |
(24,679 | ) | 2 | | 7 | | 0 | 89 | | (0 | ) | 5,693 | (18,889 | ) | ||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
45 | | 319 | | | (0 | ) | 392 | | 3 | (759 | ) | 0 | |||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
0 | | 0 | | | 7 | 26 | 302 | 910 | | 1,246 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Due from Affiliates |
45 | | 319 | | | 7 | 418 | 302 | 914 | (759 | ) | 1,246 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Assets |
$ | (24,633 | ) | $ | 8 | $ | 348 | $ | 127 | $ | 1 | $ | 7 | $ | 516 | $ | 303 | $ | 1,089 | $ | 4,908 | $ | (17,326 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Liabilities and Stockholders Equity Liabilities |
||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 1 | $ | 2 | $ | 6 | $ | 43 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 268 | $ | (240 | ) | $ | 86 | |||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
2,108 | | 2,696 | 57 | | 830 | 3,028 | 167 | 1,516 | (759 | ) | 9,642 | ||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | 1 | | | | 0 | | 26 | | 28 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Due to Affiliates |
2,108 | | 2,697 | 57 | | 830 | 3,028 | 167 | 1,542 | (759 | ) | 9,669 | ||||||||||||||||||||||||||||||||
Taxes Payable |
| | 2 | | | | | | | | 2 | |||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
| | | | | | | | 0 | | 0 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Liabilities |
2,109 | 2 | 2,706 | 100 | 0 | 830 | 3,034 | 167 | 1,809 | (999 | ) | 9,757 | ||||||||||||||||||||||||||||||||
Stockholders Equity |
(26,742 | ) | 6 | (2,358 | ) | 27 | 1 | (823 | ) | (2,517 | ) | 136 | (720 | ) | 5,908 | (27,084 | ) | |||||||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | (24,633 | ) | $ | 8 | $ | 348 | $ | 127 | $ | 1 | $ | 7 | $ | 516 | $ | 303 | $ | 1,089 | $ | 4,908 | $ | (17,326 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
See accompanying Notes to Blance Sheets |
Note: | All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0. |
(1) | Balances reflect the impact of eliminations of (i) intercompany balances only between Debtor-Controlled Entities and (ii) investments in subsidiaries only between Debtor-Controlled Entities. |
(2) | Lehman Ali Inc. is reflected on a consolidated basis: |
- excluding (i) separately reported wholly-owned subsidiaries that are Debtor entities (e.g. LCPI, LBSF and East Dover Ltd) and (ii) separately reported Debtor-Controlled Entities and their direct subsidiaries (e.g. 314 Commonwealth Ave Inc., Property Asset Management Inc., and Pami ALI LLC), and |
- including wholly owned subsidiaries of LCPI (e.g. LCPI Properties Inc.). |
(3) | Entities are reflected on a consolidated basis, e.g. Property Asset Management Inc. includes its wholly owned subsidiary, Orbit RE LLC. |
Page 35
Quarterly Financial Report as of April 5, 2018 (Unaudited)
IV. Post-Fifteenth Distribution Cash Flow Estimates
(i) Basis of Presentation
Page 36
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Page 37
Quarterly Financial Report as of April 5, 2018 (Unaudited)
(ii) Debtors and Debtor-Controlled Entities Schedules
LBHI
($ in millions) | Post-D13 Cash Flow Estimates |
Less: Cash Activity 10/6/17 - 4/5/18 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments (a) |
Post-D15 Cash Flow Estimates |
|||||||||||||||
Net Receipts |
||||||||||||||||||||
Commercial Real Estate |
$ | | $ | (0 | ) | $ | 0 | $ | | $ | | |||||||||
Residential Real Estate and Other |
3 | (14 | ) | 21 | | 11 | ||||||||||||||
Private Equity / Principal Investments |
3 | (3 | ) | 4 | | 3 | ||||||||||||||
Derivatives |
| | | | | |||||||||||||||
Other |
2,263 | (1,996 | ) | 56 | 7 | 330 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Net Receipts |
$ | 2,268 | $ | (2,014 | ) | $ | 82 | $ | 7 | $ | 344 | |||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||
Europe |
$ | 983 | $ | (82 | ) | $ | 414 | $ | 197 | $ | 1,511 | |||||||||
Asia |
442 | (81 | ) | 3 | (209 | ) | 155 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates (b) |
$ | 1,425 | $ | (163 | ) | $ | 417 | $ | (12 | ) | $ | 1,667 | ||||||||
Operating Expenses |
$ | (190 | ) | $ | 69 | $ | (17 | ) | $ | | $ | (137 | ) | |||||||
Incentive Fees |
$ | (157 | ) | $ | 107 | $ | (6 | ) | $ | | $ | (57 | ) | |||||||
Total Cash From Operations (CFO) |
$ | 3,346 | $ | (2,001 | ) | $ | 476 | $ | (5 | ) | $ | 1,816 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities (c) |
1,145 | (914 | ) | 385 | 6 | 623 | ||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities |
(961 | ) | 910 | 18 | | (33 | ) | |||||||||||||
Investments in Affiliates (d) |
616 | (347 | ) | 599 | | 868 | ||||||||||||||
Total CFO + Other Receipts |
$ | 4,147 | $ | (2,352 | ) | $ | 1,478 | $ | 2 | $ | 3,274 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(a) | Transfers, Reclassifications and Adjustments primarily include the sale from Lehman Brothers Japan Inc., a Non-Controlled Affiliate, to LBHI of claims against Non-Controlled Affiliates in Europe. |
(b) | The Company estimates that LBHI will collect approximately $1.7 billion from Non-Controlled Affiliates, of which the Company estimates that approximately 68% will be collected from LBF, LBIE, and Thayer Properties Limited. |
(c) | The Company estimates that LBHI will receive approximately $0.6 billion, including (i) $0.4 billion from Debtor-Controlled Entities, primarily Luxembourg Finance S.a.r.l., and LB I Group, which collectively represent approximately 86% of the aggregate receipts from Debtor-Controlled Entities, and (ii) $0.1 billion and $0.1 billion from LBSF and LCPI, respectively. |
(d) | The Company estimates that LBHI will receive approximately $0.9 billion, primarily from Lehman Brothers Holdings Scottish LP 2. |
Page 38
Quarterly Financial Report as of April 5, 2018 (Unaudited)
LCPI
($ in millions) | Post-D13 Cash Flow Estimates |
Less: Cash Activity 10/6/17 - 4/5/18 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments |
Post-D15 Cash Flow Estimates |
|||||||||||||||
Net Receipts |
||||||||||||||||||||
Commercial Real Estate |
$ | 59 | $ | (12 | ) | $ | 0 | $ | $ | 48 | ||||||||||
Residential Real Estate and Other |
12 | (10 | ) | 13 | | 15 | ||||||||||||||
Private Equity / Principal Investments |
3 | (3 | ) | 0 | | | ||||||||||||||
Derivatives |
| | | | | |||||||||||||||
Other |
| (0 | ) | 0 | | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Net Receipts |
$ | 75 | (24 | ) | 13 | $ | | $ | 63 | |||||||||||
Recoveries From Non-Controlled Affiliates |
| | | | | |||||||||||||||
Europe |
$ | 1 | $ | | $ | 0 | $ | | $ | 1 | ||||||||||
Asia |
0 | | 0 | | 0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 1 | $ | | $ | 1 | $ | | $ | 2 | ||||||||||
Operating Expenses |
$ | (9 | ) | 4 | $ | (1 | ) | $ | | $ | (7 | ) | ||||||||
Incentive Fees |
$ | (30 | ) | 26 | $ | (1 | ) | $ | | $ | (5 | ) | ||||||||
Total Cash From Operations (CFO) |
$ | 36 | 5 | $ | 11 | $ | | $ | 53 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities (a) |
656 | (669 | ) | 58 | 46 | 91 | ||||||||||||||
Net Post-Petition Intercompany Receipts from /(Payables to) Controlled Entities |
(524 | ) | 476 | (2 | ) | (50 | ) | |||||||||||||
Investments in Affiliates |
6 | (1 | ) | (0 | ) | 5 | ||||||||||||||
Total CFO + Other Receipts |
$ | 174 | $ | (188 | ) | $ | 66 | $ | 46 | $ | 98 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(a) | The Company estimates that LCPI will receive approximately $0.1 billion, primarily from LBHI. |
Page 39
Quarterly Financial Report as of April 5, 2018 (Unaudited)
LBSF
($ in millions) | Post-D13 Cash Flow Estimates |
Less: Cash Activity 10/6/17 - 4/5/18 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments |
Post-D15 Cash Flow Estimates |
|||||||||||||||
Net Receipts |
||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | ||||||||||
Residential Real Estate and Other |
| | | | | |||||||||||||||
Private Equity / Principal Investments |
| | | | | |||||||||||||||
Derivatives |
56 | (53 | ) | 65 | | 67 | ||||||||||||||
Other |
23 | | (16 | ) | | 7 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Net Receipts |
$ | 79 | $ | (53 | ) | $ | 49 | $ | | $ | 75 | |||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||
Europe (a) |
$ | 26 | $ | (13 | ) | $ | 3 | $ | | $ | 16 | |||||||||
Asia |
0 | | 0 | | 0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 26 | $ | (13 | ) | $ | 3 | $ | | $ | 16 | |||||||||
Operating Expenses |
$ | (52 | ) | $ | 20 | $ | (0 | ) | $ | | $ | (32 | ) | |||||||
Incentive Fees |
$ | (22 | ) | $ | 20 | $ | (3 | ) | $ | | $ | (5 | ) | |||||||
Total Cash From Operations (CFO) |
$ | 31 | $ | (26 | ) | $ | 49 | $ | | $ | 54 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
72 | (87 | ) | 28 | | 12 | ||||||||||||||
Net Post-Petition Intercompany Receipts from /(Payables to) Controlled Entities |
311 | (311 | ) | (14 | ) | | (14 | ) | ||||||||||||
Investments in Affiliates |
| | | | | |||||||||||||||
Total CFO + Other Receipts |
$ | 414 | $ | (425 | ) | $ | 63 | $ | | $ | 52 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(a) | LBSF collected $13 million during the period between October 6, 2017 and April 5, 2018, and the Company estimates that LBSF will collect an additional $16 million from LBT. |
Page 40
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Other Debtors
($ in millions) | LOTC | LBCC | LBCS | LBFP | Merit | LBDP | Other Debtors |
Total Other Debtors |
||||||||||||||||||||||||
POST-D15 CASH FLOW ESTIMATES |
||||||||||||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Residential Real Estate and Other |
| | | | | | | | ||||||||||||||||||||||||
Private Equity / Principal Investments |
| | | | | | | | ||||||||||||||||||||||||
Derivatives |
| | | | | | | | ||||||||||||||||||||||||
Other |
0 | 0 | 0 | 0 | | | | 1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Sub-Total - Net Receipts |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | | $ | | $ | | $ | 1 | ||||||||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||||||
Europe |
$ | | $ | | $ | 4 | $ | | $ | | $ | | $ | | $ | 4 | ||||||||||||||||
Asia |
| 1 | | | | | | 1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | | $ | 1 | $ | 4 | $ | | $ | | $ | | $ | | $ | 4 | ||||||||||||||||
Operating Expenses |
$ | (0 | ) | $ | (2 | ) | $ | (2 | ) | $ | (0 | ) | $ | | $ | (0 | ) | $ | (0 | ) | $ | (4 | ) | |||||||||
Incentive Fees |
$ | (0 | ) | $ | (1 | ) | $ | (1 | ) | $ | (0 | ) | $ | | $ | (0 | ) | $ | (0 | ) | $ | (2 | ) | |||||||||
Total Cash From Operations (CFO) |
$ | (0 | ) | $ | (2 | ) | $ | 1 | $ | (0 | ) | $ | | $ | (0 | ) | $ | (0 | ) | $ | (2 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
$ | | $ | | $ | | $ | | $ | | $ | | $ | 0 | $ | 0 | ||||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities (a) |
(0 | ) | 40 | (4 | ) | (0 | ) | | (0 | ) | (7 | ) | 29 | |||||||||||||||||||
Investments in Affiliates |
| | | | | | | | ||||||||||||||||||||||||
Total Post-D15 CFO + Other Receipts |
$ | (1 | ) | $ | 38 | $ | (3 | ) | $ | (0 | ) | $ | | $ | (0 | ) | $ | (8 | ) | $ | 27 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash Activity, 10/6/17 - 4/5/18 |
$ | 482 | $ | 276 | $ | 24 | $ | 241 | $ | | $ | 167 | $ | 0 | $ | 1,190 | ||||||||||||||||
Transfers, Reclassifications, Adjustments |
| 0 | 2 | 0 | | | 3 | 5 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Post-D15 CFE, including Prior Period Activity |
$ | 482 | $ | 315 | $ | 23 | $ | 241 | $ | | $ | 167 | $ | (5 | ) | $ | 1,221 | |||||||||||||||
Total Post-D13 CFE |
482 | 316 | 22 | 241 | (0 | ) | 167 | (7 | ) | 1,221 | ||||||||||||||||||||||
Variance, Post-D13 CFE (including Prior Period) vs. Post-D13 CFE |
(0 | ) | (1 | ) | 0 | 0 | 0 | (0 | ) | 2 | 1 |
(a) | Net Post-Petition Intercompany Receipts from/Payables to Controlled Entities primarily include an outstanding loan of $42 million from LBCC to LCPI. |
Page 41
Quarterly Financial Report as of April 5, 2018 (Unaudited)
Debtor-Controlled Entities
($ in millions) | Post-D13 Cash Flow Estimates |
Less: Cash Activity 10/6/17 - 4/5/18 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments |
Post-D15 Cash Flow Estimates |
|||||||||||||||
Net Receipts |
||||||||||||||||||||
Commercial Real Estate |
$ | 10 | $ | (1 | ) | $ | 2 | $ | | $ | 12 | |||||||||
Residential Real Estate and Other |
| (1 | ) | 1 | | | ||||||||||||||
Private Equity / Principal Investments |
108 | (22 | ) | (1 | ) | | 85 | |||||||||||||
Derivatives |
0 | (0 | ) | 0 | | 0 | ||||||||||||||
Other |
49 | (21 | ) | (22 | ) | | 7 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Net Receipts |
$ | 167 | $ | (44 | ) | $ | (20 | ) | $ | | $ | 104 | ||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||
Europe |
$ | 193 | $ | | $ | 863 | $ | | $ | 1,056 | ||||||||||
Asia |
5 | (2 | ) | (3 | ) | | 0 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates (a) |
$ | 198 | $ | (2 | ) | $ | 859 | $ | | $ | 1,056 | |||||||||
Operating Expenses |
$ | (4 | ) | $ | 2 | $ | (2 | ) | $ | | $ | (4 | ) | |||||||
Incentive Fees |
$ | | $ | | $ | | $ | | $ | | ||||||||||
Total Cash From Operations (CFO) |
$ | 361 | $ | (43 | ) | $ | 837 | $ | | $ | 1,155 | |||||||||
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Pre-Petition Intercompany Receipts from Controlled Entities |
89 | (39 | ) | (0 | ) | (50 | ) | 0 | ||||||||||||
Net Post-Petition Intercompany Receipts from /(Payables to) Controlled Entities (b) |
68 | | (0 | ) | | 68 | ||||||||||||||
Investments in Affiliates |
414 | (379 | ) | (30 | ) | | 5 | |||||||||||||
Total CFO + Other Receipts |
$ | 932 | $ | (460 | ) | $ | 807 | $ | (50 | ) | $ | 1,228 | ||||||||
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(a) | The Company estimates that Debtor-Controlled Entities will collect approximately $1.1 billion, primarily from LBHI2. |
(b) | The Company estimates that Debtor-Controlled Entities will collect approximately $68 million from LBHI. |
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