UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 27, 2016
LEHMAN BROTHERS HOLDINGS INC. PLAN TRUST
(Exact name of registrant as specified in its charter)
Delaware | 1-9466 | 30-6315144 | ||
(State or other jurisdiction Of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1271 Avenue of the Americas
New York, New York
10020
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (646) 285-9000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01 Regulation FD Disclosure.
As previously disclosed, on September 15, 2008, Lehman Brothers Holdings Inc. (LBHI) filed a voluntary petition for relief under Chapter 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). Together with the Chapter 11 cases thereafter filed by certain subsidiaries (collectively with LBHI, the Debtors), the cases are being jointly administered under the case caption In re Lehman Brothers Holdings Inc., et. al., Case Number 08-13555 (the Chapter 11 Proceeding) pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure. On March 6, 2012, the Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. and its Affiliated Debtors (the Plan) became effective.
As contemplated under the Plan, on July 27, 2016, LBHI, the Plan Administrator, filed the Quarterly Financial Report as of March 31, 2016, which includes Balance Sheets, Accompanying Schedules, and Post-Ninth Distribution Cash Flow Estimates (collectively, the Quarterly Financial Report) of LBHI and Other Debtors and Debtor-Controlled Entities (collectively, the Company) with the Bankruptcy Court. A copy of the court filing is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K.
Limitation on Incorporation by Reference
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Cautionary Statements Regarding Financial and Operating Data
The Company cautions the reader not to place undue reliance upon the information contained in the Quarterly Financial Report, as it is not prepared for the purpose of providing the basis for an investment decision directly or indirectly relating to the Company or any of its securities. The Quarterly Financial Report is not prepared in accordance with U.S. generally accepted accounting principles, is not audited or reviewed by independent accountants, will not be subject to audit or review by external auditors at any time in the future, is in a format consistent with applicable bankruptcy laws, and is subject to future adjustments and reconciliations. There can be no assurances that the Quarterly Financial Report is accurate or complete. The Quarterly Financial Report contains a further description of limitations on the information contained therein. The Quarterly Financial Report also contains information which might not be indicative of the Companys financial condition. Results set forth in the Quarterly Financial Report should not be viewed as indicative of future results.
Cautionary Statement Regarding Forward-Looking Statements
This Current Report on Form 8-K and Exhibit 99.1 hereto may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Companys financial condition, results of operations, and business that is not historical information. Forward-looking statements reflect the Companys current views with respect to future events as well as various estimates, assumptions and comparisons based on available information up to the date of this report, many of which are subject to risks and uncertainties. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including all statements regarding information regarding the intent, belief or current expectation of the Company and members of
its management. The words believe, expect, plan, intend, estimate, or anticipate and similar expressions, as well as future or conditional verbs such as will, should, would, and could, often identify forward-looking statements. These statements speak only as of the date hereof and involve known and unknown risks, uncertainties and other factors, including factors which are outside the Companys control, which may cause the Companys actual condition, results, performance or achievements to be materially different from any future condition, results, performance or achievements expressed or implied by these forward-looking statements. Such factors include, without limitation, the potential adverse impact of the Chapter 11 Proceeding on the Companys liquidity or results of operations. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, but reserves the right to do so. Readers of this report should not place undue reliance on these forward-looking statements.
The Companys informational filings with the Bankruptcy Court, including the Quarterly Financial Report included in Exhibit 99.1, are available to the public at the office of the Clerk of the Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, New York 10004-1408. Such informational filings may be available electronically, for a fee, through the Bankruptcy Courts Internet world wide web site (www.nysb.uscourts.gov), and/or free of cost, at a world wide web site maintained by the Companys Bankruptcy Court-approved noticing agent (www.lehman-docket.com).
ITEM 9.01 Financial Statements and Exhibits.
(d) | Exhibits |
99. 1 |
Quarterly Financial Report as of March 31, 2016, which includes Balance Sheets, Accompanying Schedules, and Post-Ninth Distribution Cash Flow Estimates of Lehman Brothers Holdings Inc. and Other Debtors and Debtor-Controlled Entities |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Lehman Brothers Holdings Inc. Plan Trust has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LEHMAN BROTHERS HOLDINGS INC. PLAN TRUST
By Lehman Brothers Holdings Inc. as Plan Administrator | ||||||
Date: July 27, 2016 |
By: | /s/ Kristine Dickson | ||||
Name: | Kristine Dickson | |||||
Title: | Executive Vice President - Finance |
EXHIBIT INDEX
Exhibit No. |
Description | |
99.1 | Quarterly Financial Report as of March 31, 2016, which includes Balance Sheets, Accompanying Schedules, and Post-Ninth Distribution Cash Flow Estimates of Lehman Brothers Holdings Inc. and Other Debtors and Debtor-Controlled Entities. |
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 MARCH 31, 2016
BALANCE SHEETS, ACCOMPANYING SCHEDULES,
AND POST-NINTH DISTRIBUTION CASH FLOW ESTIMATES
DEBTORS ADDRESS: | LEHMAN BROTHERS HOLDINGS INC. | |
c/o KRISTINE DICKSON, EXECUTIVE VICE PRESIDENTFINANCE | ||
1271 AVENUE OF THE AMERICAS | ||
40th FLOOR | ||
NEW YORK, NY 10020 | ||
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, 2016 |
Quarterly Financial Report as of March 31, 2016 (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 Investment | 5 | |||||||||
Note 4 Cash and Short-Term Investments Pledged or Restricted | 6 | |||||||||
Note 5 Financial Instruments and Other Inventory Positions | 7 | |||||||||
Note 6 Subrogated Receivables from Affiliates and Third Parties | 10 | |||||||||
Note 7 Receivables from Controlled Affiliates and Other Assets | 11 | |||||||||
Note 8 Investments in Affiliates | 13 | |||||||||
Note 9 Due from/to Affiliates | 14 | |||||||||
Note 10 Payables to Controlled Affiliates and Other Liabilities | 25 | |||||||||
Note 11 Taxes Payable | 26 | |||||||||
Note 12 Liabilities Subject to Compromise | 27 | |||||||||
Note 13 Legal Proceedings | 30 | |||||||||
Note 14 Currency Translation | 33 | |||||||||
Note 15 Financial Systems and Control Environment | 33 | |||||||||
III. |
Balance Sheets | 34 | ||||||||
IV. |
Accompanying Schedules | 37 | ||||||||
V. |
Post-Ninth Distribution Cash Flow Estimates | 43 |
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 March 31, 2016 (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) |
|||||||
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 Brothers Derivative Products Inc. (LBDP) |
08-13899 | 10/5/2008 | ||||||
Lehman Commercial Paper Inc. (LCPI) |
08-13900 | 10/5/2008 | ||||||
Lehman Brothers Commercial Corporation (LBCC) |
08-13901 | 10/5/2008 | ||||||
Lehman Brothers Financial Products Inc. (LBFP) |
08-13902 | 10/5/2008 | ||||||
Lehman Scottish Finance L.P. |
08-13904 | 10/5/2008 | ||||||
East Dover Limited |
08-13908 | 10/5/2008 | ||||||
Luxembourg Residential Properties Loan Finance S.a.r.l (Lux Resi) |
09-10108 | 1/7/2009 | ||||||
BNC Mortgage LLC |
09-10137 | 1/9/2009 | ||||||
LB Rose Ranch LLC |
09-10560 | 2/9/2009 | ||||||
Structured Asset Securities Corporation |
09-10558 | 2/9/2009 | ||||||
Merit LLC (Merit) |
09-17331 | 12/14/2009 |
The following Debtors chapter 11 cases were closed on January 28, 2016, pursuant to a final decree entered by the Bankruptcy Court (Docket No. 51920):
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 |
Page 3
Quarterly Financial Report as of March 31, 2016 (Unaudited)
II. Notes to the Balance Sheets and Managements Discussion & Analysis
Page 4
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Page 5
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 4 Cash and Short-Term Investments Pledged or Restricted
The following table summarizes the components of restricted cash as of March 31, 2016:
Debtors | Debtor- Controlled |
Total |
||||||||||||||||||||||||||
($ in millions) | LBHI | LBSF | LCPI | Other | Total | |||||||||||||||||||||||
Reserves for Claims: |
||||||||||||||||||||||||||||
Disputed unsecured claims (1) |
$ | 1,039 | $ | 979 | $ | 0 | $ | 291 | $ | 2,309 | $ | | $ | 2,309 | ||||||||||||||
Tax claims (2) |
0 | 25 | | 4 | 29 | | 29 | |||||||||||||||||||||
Distributions on Allowed Claims (not remitted) (3) |
90 | 0 | 0 | 1 | 91 | | 91 | |||||||||||||||||||||
Secured, Admin, Priority Claims and Other |
115 | 52 | 21 | 21 | 208 | | 208 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Subtotal, Claims Reserves |
1,244 | 1,055 | 21 | 317 | 2,638 | | 2,638 | |||||||||||||||||||||
Cash pledged to JPMorgan (CDA) (4) |
76 | | | | 76 | | 76 | |||||||||||||||||||||
Citigroup and HSBC (5) |
2,035 | | | | 2,035 | | 2,035 | |||||||||||||||||||||
Other (6) |
179 | 1 | 0 | 25 | 204 | 38 | 242 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total |
$ | 3,534 | $ | 1,056 | $ | 22 | $ | 341 | $ | 4,954 | $ | 38 | $ | 4,992 | ||||||||||||||
|
|
|
|
|
|
Totals may not foot due to rounding.
(1) | Represents the cash reserve for the principal amount of disputed unsecured claims subsequent to the ninth Plan distribution on March 31, 2016 (D9). Amounts of claim reserves at LBSF and LBCC exclude amounts invested in loans to LBHI in the amounts of $875 million and $125 million, respectively (refer to Note 7 Receivables from Controlled Affiliates and Other Assets). |
(2) | The $29 million reserved at LBSF and LBCC represents the cash reserve for non-income tax matters. |
(3) | Includes (i) $72 million related to the Office of Foreign Asset Control (OFAC) and (ii) $19 million related to other open items. |
(4) | Represents cash deposited into accounts by LBHI and pledged to JP Morgan Chase Bank, N.A. (including its affiliates, JPM) pursuant to paragraph 6(b) of the Collateral Disposition Agreement (CDA) with JPM, effective March 31, 2010. This cash was released in May 2016 as part of the JPM Settlement, which is defined and discussed in Note 6 Subrogated Receivables from Affiliates and Third Parties and in Note 13 Legal Proceedings. |
(5) | Represents cash deposited prior to the Commencement Date by the Company in connection with certain requests and/or documents executed by the Company and Citigroup Inc. (Citigroup) ($2,008 million) and HSBC Bank PLC (HSBC) ($27 million). The Company has recorded reserves against this cash in Secured Claims Payable to Third Parties, because these institutions have asserted claims. The Company is in discussions with HSBC and commenced litigation against Citigroup regarding these deposits. |
(6) | Includes: (i) $89 million related to various pre-petition balances on administrative hold by certain financial institutions, (ii) $56 million related to misdirected wires and other cash received by LBHI for the benefit of third parties and Non-Controlled Affiliates (reported as a payable), and (iii) $97 million of various miscellaneous items. |
Page 6
Quarterly Financial Report as of March 31, 2016 (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 March 31, 2016 by asset portfolio, and the changes in recovery values since the previously filed Quarterly Financial Report as of December 31, 2015:
(Activity 01/01/1603/31/16) | ||||||||||||||||
Recovery | ||||||||||||||||
Inventory as of | Value | Inventory as of | ||||||||||||||
$ in millions |
December 31, 2015 | Change (1) | Cash Activities (2) | March 31, 2016 | ||||||||||||
Commercial Real Estate |
||||||||||||||||
Debtors: |
||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 36 | $ | 0 | $ | (2 | ) | $ | 34 | |||||||
Lehman Commercial Paper Inc. |
209 | 1 | (16 | ) | 195 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Debtors |
245 | 2 | (18 | ) | 229 | |||||||||||
Debtor-Controlled |
385 | 38 | (155 | ) | 268 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Commercial Real Estate |
630 | 39 | (173 | ) | 497 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loans and Residential Real Estate |
||||||||||||||||
Debtors: |
||||||||||||||||
Lehman Brothers Holdings Inc. |
79 | 18 | (36 | ) | 62 | |||||||||||
Lehman Commercial Paper Inc. |
80 | 14 | (7 | ) | 88 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Debtors |
159 | 33 | (43 | ) | 149 | |||||||||||
Debtor-Controlled |
41 | (9 | ) | (1 | ) | 31 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Loans and Residential Real Estate |
200 | 23 | (44 | ) | 180 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Private Equity / Principal Investments |
||||||||||||||||
Debtors: |
||||||||||||||||
Lehman Brothers Holdings Inc. |
0 | 0 | (0 | ) | 0 | |||||||||||
Lehman Commercial Paper Inc. |
3 | | | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Debtors |
3 | 0 | (0 | ) | 3 | |||||||||||
Debtor-Controlled |
1,253 | (83 | ) | (71 | ) | 1,099 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Private Equity / Principal Investments |
1,257 | (83 | ) | (72 | ) | 1,102 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Receivables and Related Assets |
||||||||||||||||
Debtors: |
||||||||||||||||
Lehman Brothers Special Financing Inc. |
160 | 255 | (52 | ) | 363 | |||||||||||
Lehman Brothers Commodity Services Inc. |
0 | 30 | | 30 | ||||||||||||
Lehman Commercial Paper Inc. |
| 1 | (1 | ) | | |||||||||||
Lehman Brothers Financial Products Inc. |
| 2 | (2 | ) | | |||||||||||
Other Debtors |
6 | (0 | ) | (6 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Debtors |
166 | 287 | (61 | ) | 393 | |||||||||||
Debtor-Controlled |
1 | 7 | (7 | ) | 1 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Derivative Receivables and Related Assets |
167 | 294 | (68 | ) | 393 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Totals |
$ | 2,254 | $ | 274 | $ | (356 | ) | $ | 2,172 | |||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
(1) | Represents adjustments to recovery values based on changes in market prices, 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. |
Page 7
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions (continued)
Page 8
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 5 Financial Instruments and Other Inventory Positions (continued)
Page 9
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 6 Subrogated Receivables from Affiliates and Third Parties
JPM Settlement Agreement
On January 25, 2016, LBHI and certain Controlled Affiliates and JPM entered into a Settlement Agreement (the JPM Settlement) which provides for, among other things, the net cash payment by JPM to LBHI, LBSF and LBCS totaling $1.42 billion, the release of JPMs lien on a collateral account, per the CDA, holding $76 million, and the final allowed amounts of the JPM derivatives claims (refer to Note 13 Legal Proceedings for further discussion). The following table summarizes the impact of the JPM Settlement on the Company receivables and cash, which is recorded in the Balance Sheets:
$ in millions |
Subrogated Receivables @ 12/31/15 |
Claims with Controlled Entities (4) |
Adjustments (5) | Subrogated Receivables @ 3/31/16 |
Cash Received on 5/17/16 |
Subrogated Receivables Post-JPM Settlement |
||||||||||||||||||
LBHI |
||||||||||||||||||||||||
Lehman Brothers Special Finance |
$ | 1,636 | $ | (633 | ) | $ | 60 | $ | 1,063 | $ | (1,061 | ) | $ | 2 | ||||||||||
Lehman Brothers Commercial Corp |
125 | (20 | ) | | 104 | (104 | ) | | ||||||||||||||||
Lehman Brothers Finance S.A. |
39 | | (39 | ) | | | | |||||||||||||||||
Lehman Brothers Holdings Japan Inc |
59 | | (59 | ) | | | | |||||||||||||||||
Lehman Brothers Treasury Co. B.V. |
14 | | | 14 | | 14 | ||||||||||||||||||
Real Estate Private Equity Inc. |
19 | | (0 | ) | 18 | | 18 | |||||||||||||||||
Lehman Brothers Commodity Services Inc. |
0 | (7 | ) | 7 | 0 | | 0 | |||||||||||||||||
Other (2) |
97 | | (67 | ) | 30 | (25 | ) | 5 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total LBHI |
1,988 | (661 | ) | (98 | ) | 1,229 | (1,190 | ) | 40 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
LBCS (1) (3) |
| 30 | (30 | ) | | |||||||||||||||||||
Derivative Claims |
||||||||||||||||||||||||
LBSF (1) |
| 201 | (201 | ) | | |||||||||||||||||||
|
|
|||||||||||||||||||||||
Derivative Claims |
||||||||||||||||||||||||
Total Cash Collected |
$ | (1,420 | ) | |||||||||||||||||||||
|
|
(1) | The JPM Settlement resulted in a reduction of the Liabilities Subject to Compromise at LBSF, LBCS and LBCC of approximately $264 million. |
(2) | Includes adjustments related to asserted claims by JPM that were previously provisionally satisfied by LBHI pursuant to the CDA. |
(3) | LBCS was allowed a Class 4A claim for $29.7 million against LBSF in May 2016, which is reflected in Due from Affiliates - Debtors and Debtor-Controlled Entities. |
(4) | LBHI was allowed Class 4A claims against LBSF, LBCC and LBCS in May 2016, which are reflected in Due from Affiliates - Debtors and Debtor-Controlled Entities. |
(5) | Includes the reclassification of LBHIs gross claims, net of cash distributions, against Lehman Brothers Finance S.A. and Lehman Brothers Holding Japan Inc. of $39 million and $59 million, respectively, from Subrogated Receivables from Affiliates and Third Parties to Receivables from Debtors and Debtor-Controlled Entities and Other Assets at recovery value. |
Page 10
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 7 Receivables from Debtors and Debtor-Controlled Entities and Other Assets
Receivables from Debtors and Debtor-Controlled Entities and Other Assets includes: (i) $2.9 billion 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) $490 million of other assets.
The following table summarizes the main components of Receivables from Debtors and Debtor-Controlled Entities and Other Assets as of March 31, 2016:
Debtors | Debtor- | Total Debtors and Debtor- |
||||||||||||||||||||||||||
$ in millions | LBHI | LCPI | LBSF | Other Debtors |
Total | Controlled Entities |
Controlled Entities |
|||||||||||||||||||||
Encumbered Financial Inventory (1) |
$ | | $ | 300 | $ | | $ | | $ | 300 | $ | | $ | 300 | ||||||||||||||
Secured Notes (2) |
| | 875 | 957 | 1,832 | 69 | 1,901 | |||||||||||||||||||||
Fundings and other activites (3) |
232 | 24 | 0 | 5 | 261 | 486 | 747 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities |
232 | 324 | 875 | 962 | 2,393 | 555 | 2,948 | |||||||||||||||||||||
Receivable related to Fenway (4) |
91 | | | | 91 | | 91 | |||||||||||||||||||||
Affiliate Claims (5) |
168 | 1 | 28 | 1 | 197 | 0 | 197 | |||||||||||||||||||||
Collateral Posted on Hedges |
135 | 6 | | | 141 | | 141 | |||||||||||||||||||||
Other |
8 | (0 | ) | (0 | ) | 0 | 8 | 52 | 60 | |||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Other Assets |
402 | 7 | 28 | 1 | 438 | 52 | 490 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||
Total Receivables from Debtors and Debtor-Controlled Entities and Other Assets |
$ | 635 | $ | 330 | $ | 903 | $ | 963 | $ | 2,831 | $ | 607 | $ | 3,438 | ||||||||||||||
|
|
|
|
|
|
(1) | Represents Private Equity/Principal Investment assets encumbered by LB I Group Inc. for the benefit of LCPI. |
(2) | Includes (i) loans from LOTC of $551 million, LBCC of $121 million, LBDP $20 million and a Debtor-Controlled Entity of $69 million to LBHI, secured by LBHI assets; (ii) a loan from LBFP to LCPI of $140 million, secured by LCPI assets; and (iii) investments of $875 million and $125 million of LBSFs and LBCCs cash reserves for disputed claims, respectively, in secured notes issued by LBHI. As of May 31, 2016, LBHIs investment in LBSF of $875 million was reduced to $314 million and LBHIs investment in LBCC of $125 million was fully paid down (refer to the May 2016 Post-Effective Operating Report [Docket No. 53160] for further information). |
(3) | Includes (i) $226 million related to promissory notes issued by LBHI to certain Debtor-Controlled Entities, of which LBHI is the ultimate economic beneficiary; (ii) $201 million of cash collections at LCPI for the benefit of certain Debtor-Controlled Entities, of which LCPI is the ultimate economic beneficiary; (iii) $183 million primarily related to fundings (e.g. capital calls) by LBHI and cost allocations; and (iv) $49 million at LBHI related to the Modified Settlement with respect to the Variable Funding Trust [Docket No. 19370]. |
(4) | 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 $139 million of payments received by LBHI as a result of Plan distributions. |
(5) | Includes (i) $115 million of affiliate claims acquired through settlements with third parties valued at estimated recoveries, net of distributions; and (ii) $82 million from a total return swap related to future distributions on LBI claims held by LBHI; LBHI recorded an offsetting payable of $82 million in Payables to Controlled Affiliates and other liabilities. |
Page 11
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 7 Receivables from Debtors and Debtor-Controlled Entities and Other Assets (continued)
Page 12
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 8 Investments in Affiliates
Page 13
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 Due from/to Affiliates
Page 14
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 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 March 31, 2016 and the related activity since the previously filed Quarterly Financial Report as of December 31, 2015:
Activity 1/1/16 - 3/31/16 | ||||||||||||||||||||||||
$ in millions | As of December 31, |
Cash Receipts | Cash Distributions |
Transfers / Claim Assignments (2) (3) |
Withdrawal / / Other (4) |
As of March 31, 2016 |
||||||||||||||||||
Due From Controlled |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 28,887 | $ | (424 | ) | $ | | $ | 883 | $ | 59 | $ | 29,405 | |||||||||||
Lehman Commercial Paper Inc. |
5,013 | (80 | ) | | (20 | ) | 31 | 4,944 | ||||||||||||||||
Lehman Brothers Special Financing Inc. |
508 | (7 | ) | | | 11 | 512 | |||||||||||||||||
Other Debtors |
708 | (3 | ) | | (109 | ) | 5 | 601 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
35,116 | (514 | ) | | 754 | 105 | 35,461 | |||||||||||||||||
Debtor-Controlled |
4,344 | (32 | ) | | (127 | ) | (74 | ) | 4,111 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 39,460 | $ | (546 | ) | $ | | $ | 627 | $ | 32 | $ | 39,572 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Due To Controlled (1) |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 4,561 | $ | | $ | (34 | ) | $ | (127 | ) | $ | (29 | ) | $ | 4,370 | |||||||||
Lehman Commercial Paper Inc. |
4,140 | | (85 | ) | | | 4,055 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
10,346 | | (15 | ) | 665 | 1 | 10,997 | |||||||||||||||||
Other Debtors |
892 | | (46 | ) | 28 | 3 | 877 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
19,940 | | (180 | ) | 565 | (26 | ) | 20,299 | ||||||||||||||||
Debtor-Controlled |
12,551 | | (301 | ) | 61 | 58 | 12,368 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 32,491 | $ | | $ | (482 | ) | $ | 626 | $ | 32 | $ | 32,667 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Due to Debtors and Debtor-Controlled Entities balances are reflected in Liabilities Subject to Compromise on the March 31, 2016 Balance Sheets. |
(2) | Due from Controlled primarily includes (i) the reclassification of allowed claims against LBSF of $633 million, LBCC of $20 million and LBCS of $7 million from Subrogated Receivables from Affiliates and Third Parties related to the JPM Settlement, (ii) the reclassification of Debtor claims of $208 million from Due from Non-Controlled Affiliates related to entities (SMF No. 1 Limited and StepStone Mortgage Funding Ltd) that were transferred to the Company; and (iii) a newly allowed claim at LBCS against LBSF of $30 million as a result of the JPM Settlement; partially offset by the assignment of claims of $275 million (of which $127 million are LBHI claims against itself) as a result of the dissolution of certain Debtor-Controlled Entities. |
(3) | Due to Controlled primarily relates to (i) the reclassification at Debtor Entities of payables to JPM of $690 million to Due to Controlled Entities (included in Liabilities Subject to Compromise) as a result of the JPM Settlement, and (ii) the recording at Debtor-Controlled Entities (SMF No. 1 Limited and StepStone Mortgage Funding Ltd) of claims to LBHI of $208 million that were not reported in the Companys Balance Sheets prior to March 31, 2016; partially offset by the assignment of claims of $275 million (of which $127 million are LBHI claims against itself) as a result of the dissolution of certain Debtor-Controlled Entities. |
(4) | Primarily includes (i) debt forgiveness and claim withdrawals resulting from the dissolution of certain Debtor-Controlled Entities, and (ii) post-petition interest of $58 million. |
Page 15
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 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 March 31, 2016:
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 |
$ | | $ | | $ | 186 | $ | (10,591 | ) | $ | 132 | $ | (3,624 | ) | $ | 74 | $ | (390 | ) | $ | 392 | $ | (14,606 | ) | ||||||||||||||||
LB Special Financing Inc |
10,591 | (186 | ) | | | 100 | (250 | ) | 302 | (36 | ) | 10,994 | (473 | ) | ||||||||||||||||||||||||||
Lehman Commercial Paper Inc |
3,624 | (132 | ) | 250 | (100 | ) | | | 153 | (349 | ) | 4,027 | (581 | ) | ||||||||||||||||||||||||||
Structured Asset Securities Corp |
222 | | 0 | | | (151 | ) | | | 222 | (151 | ) | ||||||||||||||||||||||||||||
LB Commodity Services Inc |
106 | (41 | ) | | (289 | ) | | (1 | ) | | (0 | ) | 106 | (331 | ) | |||||||||||||||||||||||||
LB Commercial Corporation |
62 | (15 | ) | 36 | | 104 | | 0 | | 203 | (15 | ) | ||||||||||||||||||||||||||||
Merit, LLC |
| (15 | ) | | (13 | ) | 159 | | | | 159 | (28 | ) | |||||||||||||||||||||||||||
LB OTC Derivatives Inc |
0 | (0 | ) | 0 | | | | | | 0 | (0 | ) | ||||||||||||||||||||||||||||
Other Debtors |
0 | (3 | ) | 0 | | 86 | (0 | ) | 0 | | 86 | (3 | ) | |||||||||||||||||||||||||||
RACERS Claims (1) |
932 | | | | | | | | 932 | | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total Debtors |
$ | 15,537 | $ | (392 | ) | $ | 473 | $ | (10,994 | ) | $ | 581 | $ | (4,027 | ) | $ | 529 | $ | (776 | ) | $ | 17,120 | $ | (16,189 | ) | |||||||||||||||
Lehman Ali Inc: |
||||||||||||||||||||||||||||||||||||||||
Lehman Ali Inc (PCO) |
| (2,522 | ) | | (0 | ) | 2,567 | | 0 | | 2,567 | (2,523 | ) | |||||||||||||||||||||||||||
LB Pass-Through Securities Inc |
175 | | | | 93 | | | | 268 | | ||||||||||||||||||||||||||||||
LCPI Properties Inc |
0 | (509 | ) | | | | (0 | ) | | (0 | ) | 0 | (509 | ) | ||||||||||||||||||||||||||
LB I Group Inc: |
||||||||||||||||||||||||||||||||||||||||
LB I Group Inc (PCO) |
2,076 | (29 | ) | 9 | | 58 | (1 | ) | (0 | ) | 0 | 2,143 | (29 | ) | ||||||||||||||||||||||||||
LB Offshore Partners Ltd |
366 | | | (0 | ) | 1 | | 0 | | 367 | (0 | ) | ||||||||||||||||||||||||||||
DL Mortgage Corp |
| (189 | ) | 0 | | 770 | | | | 771 | (189 | ) | ||||||||||||||||||||||||||||
314 Commonwealth Ave Inc: |
||||||||||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc (PCO) |
795 | (89 | ) | | (2 | ) | | | | (86 | ) | 795 | (177 | ) | ||||||||||||||||||||||||||
LB U.K. Holdings (Delaware) Inc: |
||||||||||||||||||||||||||||||||||||||||
LB U.K. Holdings (Delaware) Inc (PCO) |
182 | (36 | ) | | | | | | | 182 | (36 | ) | ||||||||||||||||||||||||||||
Other: |
||||||||||||||||||||||||||||||||||||||||
Pami Ali LLC |
1,799 | (66 | ) | 1 | | 839 | (2 | ) | | 0 | 2,640 | (68 | ) | |||||||||||||||||||||||||||
Luxembourg Finance Sarl |
897 | | 28 | | | | 72 | | 997 | | ||||||||||||||||||||||||||||||
Real Estate Private Equity Inc |
595 | | | | | | | | 595 | | ||||||||||||||||||||||||||||||
SMF No.1 Limited |
197 | | | | | | | | 197 | | ||||||||||||||||||||||||||||||
Repe LBREP II Holdings, L.P. |
198 | | | | | | | | 198 | | ||||||||||||||||||||||||||||||
LBHK Funding (Cayman) No.4 |
49 | | | | | | | | 49 | | ||||||||||||||||||||||||||||||
Lehman Brothers Global Services Inc. |
58 | | | (0 | ) | | (0 | ) | | (0 | ) | 58 | (0 | ) | ||||||||||||||||||||||||||
LB Private Equity Advisers LLC |
| (88 | ) | | (0 | ) | | | | | | (89 | ) | |||||||||||||||||||||||||||
Other |
506 | (449 | ) | 1 | (1 | ) | 33 | (24 | ) | (0 | ) | (15 | ) | 541 | (489 | ) | ||||||||||||||||||||||||
LB Re Financing No.1 Limited |
5,973 | | | | | | | | 5,973 | | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total Debtor-Controlled Entities |
$ | 13,868 | $ | (3,978 | ) | $ | 39 | $ | (4 | ) | $ | 4,362 | $ | (28 | ) | $ | 72 | $ | (101 | ) | $ | 18,341 | $ | (4,111 | ) | |||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Total |
$ | 29,405 | $ | (4,370 | ) | $ | 512 | $ | (10,997 | ) | $ | 4,944 | $ | (4,055 | ) | $ | 601 | $ | (877 | ) | $ | 35,461 | $ | (20,299 | ) | |||||||||||||||
|
|
PCO parent company only
(1) | Refer to Section IV.I.b of the Disclosure Statement for further information on the RACERS Claims. |
Page 16
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 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 March 31, 2016:
Lehman ALI Inc. | LB I Group Inc. | 314 Commonwealth Ave. Inc. |
LB UK Holdings Delaware Inc. |
Other Debtor- Controlled Entities |
||||||||||||||||||||||||||||||||||||
$ in millions | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | Due from | Due to | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 3,032 | $ | (175 | ) | $ | 218 | $ | (2,442 | ) | $ | 89 | $ | (795 | ) | $ | 36 | $ | (182 | ) | $ | 603 | $ | (4,300 | ) | |||||||||||||||
Lehman Commercial Paper Inc. |
| (2,660 | ) | 1 | (829 | ) | | | | | 27 | (873 | ) | |||||||||||||||||||||||||||
Lehman Brothers Special Financing Inc. |
| | | (9 | ) | 2 | | | | 1 | (30 | ) | ||||||||||||||||||||||||||||
Luxembourg Residential Properties Loan Fin S.a.r.l. |
| | | | 86 | | | | | | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Debtors |
$ | 3,032 | $ | (2,835 | ) | $ | 219 | $ | (3,281 | ) | $ | 178 | $ | (795 | ) | $ | 36 | $ | (182 | ) | $ | 631 | $ | (5,203 | ) | |||||||||||||||
Debtor-Controlled: |
||||||||||||||||||||||||||||||||||||||||
314 Commonwealth Ave Inc |
$ | 46 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||||
Lehman Ali Inc (1) |
| | | | | (46 | ) | | | 232 | | |||||||||||||||||||||||||||||
Repe LBREP III LLC (1) |
| | | | | | | | 121 | | ||||||||||||||||||||||||||||||
Real Estate Private Equity Inc (1) |
| | | | | | | | 220 | | ||||||||||||||||||||||||||||||
LB I Group Inc. |
| | | | | | | | | (301 | ) | |||||||||||||||||||||||||||||
LCPI Properties Inc. |
| | | | | | | | | (169 | ) | |||||||||||||||||||||||||||||
Pami ALI LLC |
169 | (232 | ) | 301 | | | | | | | (341 | ) | ||||||||||||||||||||||||||||
Other |
26 | (0 | ) | 28 | (7 | ) | (1 | ) | (2 | ) | 27 | (22 | ) | 58 | (165 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total Debtor-Controlled Entities |
$ | 240 | $ | (232 | ) | $ | 329 | $ | (7 | ) | $ | (1 | ) | $ | (47 | ) | $ | 27 | $ | (22 | ) | $ | 630 | $ | (975 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 3,272 | $ | (3,067 | ) | $ | 548 | $ | (3,287 | ) | $ | 177 | $ | (842 | ) | $ | 63 | $ | (204 | ) | $ | 1,261 | $ | (6,178 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Non-Controlled Affiliates: (2) |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Holdings Intermediate 2 Ltd |
$ | | $ | | $ | | $ | | $ | | $ | | $ | 77 | $ | | $ | 749 | $ | | ||||||||||||||||||||
Lehman Brothers Holdings PLC |
| | | | | | 165 | (53 | ) | 2 | | |||||||||||||||||||||||||||||
Lehman Brothers Asia Holdings Limited |
| | | (23 | ) | | | 12 | (18 | ) | 0 | (340 | ) | |||||||||||||||||||||||||||
LB UK RE Holdings Limited |
| | | | 7 | | | | | | ||||||||||||||||||||||||||||||
Other |
0 | (1 | ) | 1 | (1 | ) | | | 110 | (3 | ) | 59 | (29 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 0 | $ | (1 | ) | $ | 1 | $ | (25 | ) | $ | 7 | $ | | $ | 363 | $ | (74 | ) | $ | 810 | $ | (369 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 17
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 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 March 31, 2016 and the related activity since the previously filed Quarterly Financial Report as of December 31, 2015:
Activity 1/1/163/31/16 | ||||||||||||||||||||||||
$ in millions | As of December 31, 2015 |
Cash Receipts (1) |
Cash Distributions |
Claim Assignments (2) |
Other (3) | As of March 31, 2016 |
||||||||||||||||||
Due From Non-Controlled |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 19,943 | $ | (654 | ) | $ | | $ | (208 | ) | $ | 367 | $ | 19,448 | ||||||||||
Lehman Commercial Paper Inc. |
137 | | | | (0 | ) | 136 | |||||||||||||||||
Lehman Brothers Special Financing Inc. |
1,270 | (5 | ) | | | (13 | ) | 1,252 | ||||||||||||||||
Other Debtors |
372 | (5 | ) | | | 2 | 369 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
21,722 | (665 | ) | | (208 | ) | 356 | 21,205 | ||||||||||||||||
Debtor-Controlled |
1,192 | (4 | ) | | | (7 | ) | 1,181 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 22,914 | $ | (670 | ) | $ | | $ | (208 | ) | $ | 350 | $ | 22,386 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Due To Non-Controlled (4) |
||||||||||||||||||||||||
Debtors: |
||||||||||||||||||||||||
Lehman Brothers Holdings Inc. |
$ | 40,187 | $ | | $ | (317 | ) | $ | | $ | 8 | $ | 39,878 | |||||||||||
Lehman Commercial Paper Inc. |
673 | | (12 | ) | | (0 | ) | 661 | ||||||||||||||||
Lehman Brothers Special Financing Inc. |
979 | | (15 | ) | |
|
|
37 | 1,001 | |||||||||||||||
Other Debtors |
99 | | (14 | ) | | 6 | 91 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Debtors |
41,938 | | (358 | ) | | 51 | 41,630 | |||||||||||||||||
Debtor-Controlled |
517 | | (49 | ) | | 1 | 468 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 42,454 | $ | | $ | (407 | ) | $ | | $ | 52 | $ | 42,099 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Between January 1, 2016 and March 31, 2016, the Company collected approximately $670 million from: |
$ in millions | LBHI | LBSF | Other Debtors |
Debtor - Controlled Entities |
Total | |||||||||||||||
Lehman Brothers Asia Holdings Ltd |
$ | 398 | $ | | $ | | $ | | $ | 398 | ||||||||||
Lehman Brothers Bankhaus A.G. (i) |
129 | | 2 | | 131 | |||||||||||||||
Lehman Brothers Commercial Corp. Asia Ltd |
53 | 0 | 3 | 0 | 56 | |||||||||||||||
Lehman Brothers Treasury Co. B.V. (ii) |
16 | 5 | 0 | | 22 | |||||||||||||||
Lehman Brothers (PTG) Limited |
16 | | | | 16 | |||||||||||||||
Lehman Brothers Investments PTE |
15 | | | | 15 | |||||||||||||||
Thayer Properties Ltd |
13 | | | | 13 | |||||||||||||||
Monaco NPL (No.1) Ltd |
5 | | | | 5 | |||||||||||||||
LB UK RE Holdings Ltd |
4 | | | | 4 | |||||||||||||||
Stepstone Mortgage Funding Ltd |
3 | | | | 3 | |||||||||||||||
Other |
3 | | 1 | 4 | 7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 654 | $ | 5 | $ | 5 | $ | 4 | $ | 670 | |||||||||||
|
|
|
|
|
|
|
|
|
|
(i) | Receipts at LBHI primarily relate to direct claims against LB Bankhaus that were assigned to LBHI as a result of the Bankhaus Creditors Settlement (refer to Note 9(c) Settlements with Non-Controlled Affiliates for further information). |
(ii) | Pursuant to agreements with Lehman Brothers Treasury Co. B.V. (LBT), LBSF and LBCS, LBHI deducted and withheld approximately $22 million from its ninth Plan distribution (Withheld Distributions) due from LBHI to LBT to offset amounts due to LBHI, LBSF and LBCS from LBT. The Withheld Distributions were then distributed to LBSF, LBCS and LBHI for inclusion in their respective ninth Plan distributions. |
Page 18
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates
(2) | Claim assignments include the reclassification of $208 million at LBHI to Due from/to Debtors and Debtor-Controlled Entities. |
(3) | Due From Non-Controlled balances are recorded in the local currency of the Non-Controlled Affiliate and as a result, balances fluctuate due to changes in foreign exchange rates. Other includes the impact from movements in foreign exchange rates of approximately $409 million. |
(4) | Due to Non-Controlled balances with Non-Controlled Affiliates are reflected in Liabilities Subject to Compromise herein. |
Page 19
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 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 March 31, 2016:
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) |
$ | 2,268 | $ | (24,048 | ) | $ | 708 | $ | | $ | | $ | | $ | 110 | $ | | $ | 3,086 | $ | (24,048 | ) | ||||||||||||||||||
Lehman Brothers Finance S.A. |
9,096 | (716 | ) | | | 0 | | 1 | | 9,096 | (716 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Bankhaus A.G. |
1,110 | (32 | ) | | (112 | ) | | (111 | ) | 25 | | 1,135 | (256 | ) | ||||||||||||||||||||||||||
LB UK RE Holdings Limited |
742 | | | | | | | | 742 | | ||||||||||||||||||||||||||||||
Lehman Brothers (Luxembourg) S.A. |
374 | | | | | | | | 374 | | ||||||||||||||||||||||||||||||
Thayer Properties Limited |
207 | | | | | (0 | ) | | | 207 | (0 | ) | ||||||||||||||||||||||||||||
LB (PTG) Ltd |
166 | | | | 0 | | | | 166 | | ||||||||||||||||||||||||||||||
LB Lease & Finance No.1 Ltd |
127 | | | | | | | | 127 | | ||||||||||||||||||||||||||||||
LB (Luxembourg) Equity Finance S.A |
53 | (59 | ) | | | | | | | 53 | (59 | ) | ||||||||||||||||||||||||||||
Longmeade Limited |
11 | | | | | (59 | ) | | | 11 | (59 | ) | ||||||||||||||||||||||||||||
LB RE Financing No.2 Limited (2) |
0 | (4,728 | ) | | | | | | | 0 | (4,728 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Limited |
0 | (253 | ) | | (2 | ) | | (1 | ) | | (0 | ) | 0 | (257 | ) | |||||||||||||||||||||||||
Lehman Brothers International (Europe) Inc (3) |
| (783 | ) | | (570 | ) | | | | | | (1,353 | ) | |||||||||||||||||||||||||||
LB RE Financing No.3 Limited |
| | 508 | | | | | | 508 | | ||||||||||||||||||||||||||||||
Lehman Re Limited |
| | | | | | | (7 | ) | | (7 | ) | ||||||||||||||||||||||||||||
Wood Street Investments Ltd |
| (193 | ) | | | | | | | | (193 | ) | ||||||||||||||||||||||||||||
LB Holdings Intermediate 2 Ltd |
| (214 | ) | | | | | | | | (214 | ) | ||||||||||||||||||||||||||||
LB UK Holdings Limited |
| (429 | ) | | | | | | | | (429 | ) | ||||||||||||||||||||||||||||
Eldon Street Holdings Limited |
| (447 | ) | | | | (0 | ) | | (0 | ) | | (448 | ) | ||||||||||||||||||||||||||
Storm Funding Ltd |
| (104 | ) | | (3 | ) | | (45 | ) | | | | (153 | ) | ||||||||||||||||||||||||||
Asia |
||||||||||||||||||||||||||||||||||||||||
Lehman Brothers Asia Holdings Limited |
3,267 | (1 | ) | | | | | | (4 | ) | 3,267 | (4 | ) | |||||||||||||||||||||||||||
LB Commercial Corp. Asia Limited |
1,005 | | 7 | | | (1 | ) | 49 | (55 | ) | 1,062 | (55 | ) | |||||||||||||||||||||||||||
LB Asia Pacific (Singapore) PTE |
366 | | | | | | | | 366 | | ||||||||||||||||||||||||||||||
LB Investments PTE Ltd |
252 | (1 | ) | | (3 | ) | | | | (0 | ) | 252 | (4 | ) | ||||||||||||||||||||||||||
LB Asia Capital Company |
25 | | 29 | | 134 | | 149 | | 336 | | ||||||||||||||||||||||||||||||
LB Securities Asia Limited |
0 | (5 | ) | | | | | | | 0 | (5 | ) | ||||||||||||||||||||||||||||
Lehman Brothers Japan Inc. |
5 | (88 | ) | | (136 | ) | | | 17 | | 23 | (224 | ) | |||||||||||||||||||||||||||
Lehman Brothers Asia Limited |
| | | | | (0 | ) | 0 | | 0 | (0 | ) | ||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||
Claims held by third parties (4) |
| (7,505 | ) | | (86 | ) | | (415 | ) | | (1 | ) | | (8,007 | ) | |||||||||||||||||||||||||
Other |
374 | (272 | ) | 0 | (87 | ) | 3 | (28 | ) | 17 | (24 | ) | 394 | (411 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 19,448 | $ | (39,878 | ) | $ | 1,252 | $ | (1,001 | ) | $ | 136 | $ | (661 | ) | $ | 369 | $ | (91 | ) | $ | 21,205 | $ | (41,630 | ) | |||||||||||||||
|
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|
|
|
|
|
|
|
(1) | LBT is included in the defined term Non-Controlled Affiliates, but LBHI has no direct or indirect equity interest in LBT. |
(2) | Distributions from LBHI to LB RE Financing No.2 Limited (FIN2) are subsequently remitted from FIN2 to LB RE Financing No. 1 Limited (FIN1); FIN1 then pays these monies to LBHI to satisfy its obligations. |
(3) | LBHI and Other Debtors own allowed claims against LBIE in the aggregate face amounts of £200 million and £69 million, respectively. |
Page 20
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
(4) | Claims held by third parties represent claims, 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) | ||||||||||||||||
Orignal creditor |
LBHI | LBSF | LCPI | Total Debtors |
||||||||||||
Lehman Brothers Bankhaus A.G. |
$ | (5,167 | ) | $ | (0 | ) | $ | (227 | ) | $ | (5,395 | ) | ||||
Lehman Brothers Securities NV |
(535 | ) | (47 | ) | (11 | ) | (593 | ) | ||||||||
Storm Funding Ltd |
(612 | ) | | | (612 | ) | ||||||||||
LB Asia Capital Company |
(433 | ) | | | (433 | ) | ||||||||||
Lehman Re Limited |
(299 | ) | (17 | ) | (121 | ) | (437 | ) | ||||||||
LB Securities Asia Limited |
(139 | ) | | | (139 | ) | ||||||||||
Lehman Brothers Asia Limited |
(132 | ) | | | (132 | ) | ||||||||||
Lehman Brothers Futures Asia Limited |
(63 | ) | | | (63 | ) | ||||||||||
Other |
(126 | ) | (22 | ) | (57 | ) | (204 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Claims held by third parties |
$ | (7,505 | ) | $ | (86 | ) | $ | (415 | ) | $ | (8,007 | ) | ||||
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|
|
|
|
The following table presents, on an aggregate basis for Debtors and Debtor-Controlled Entities, admitted claims, receivables, and collections to date from Non-Controlled Affiliates:
$ in millions |
Local Currency |
Admitted Claims in Local Currency |
Admitted and Unsettled Filed Claims in USD |
Collections To Date in USD (5) |
Net Receivables in USD |
|||||||||||||||
Europe |
||||||||||||||||||||
Lehman Brothers Finance S.A. |
CHF | 9,582 | $ | 10,046 | $ | (950 | ) | $ | 9,096 | |||||||||||
Lehman Brothers Treasury Co B.V. |
USD | 4,342 | 4,342 | (1,336 | ) | 3,005 | ||||||||||||||
Lehman Brothers Treasury Co B.V. (1) |
Various | | 113 | (33 | ) | 80 | ||||||||||||||
Lehman Brothers Bankhaus A.G. |
EUR | 203 | 231 | (205 | ) | 26 | ||||||||||||||
Lehman Brothers Bankhaus A.G. - Assigned (2) |
EUR | 8,842 | 10,068 | (8,958 | ) | 1,110 | ||||||||||||||
LB UK RE Holdings Limited |
GBP | 1,188 | 1,708 | (959 | ) | 749 | ||||||||||||||
Lehman Brothers (Luxembourg) S.A. |
EUR | 759 | 864 | (490 | ) | 374 | ||||||||||||||
LB Holdings Intermediate 2 Ltd (3) (4) |
| | 826 | | 826 | |||||||||||||||
Lehman Brothers International (Europe) Inc |
GBP | 350 | 507 | (507 | ) | | ||||||||||||||
LB RE Financing No.3 Limited |
GBP | 353 | 508 | | 508 | |||||||||||||||
LB Commercial Mortgage Conduit Ltd |
GBP | 240 | 345 | (273 | ) | 72 | ||||||||||||||
Thayer Properties Limited |
GBP | 172 | 247 | (40 | ) | 207 | ||||||||||||||
LB (PTG) Ltd |
GBP | 170 | 244 | (78 | ) | 166 | ||||||||||||||
Lehman Brothers Holdings Plc |
GBP | 158 | 229 | (14 | ) | 215 | ||||||||||||||
LB Lease & Finance No.1 Ltd |
GBP | 122 | 175 | (48 | ) | 127 | ||||||||||||||
LB (Luxembourg) Equity Finance S.A |
EUR | 96 | 109 | (56 | ) | 53 | ||||||||||||||
Monaco NPL (No.1) Limited |
GBP | 62 | 89 | (89 | ) | | ||||||||||||||
Yellow Real Estate Ltd |
USD | 89 | 89 | (89 | ) | | ||||||||||||||
Longmeade Limited |
GBP | 43 | 62 | (23 | ) | 39 | ||||||||||||||
Asia |
||||||||||||||||||||
Lehman Brothers Asia Holdings Limited |
HKD | 82,330 | 10,626 | (7,347 | ) | 3,279 | ||||||||||||||
LB Asia Capital Company |
HKD | 3,279 | 423 | (87 | ) | 336 | ||||||||||||||
LB Asia Pacific (Singapore) PTE (4) |
USD | 366 | 366 | | 366 | |||||||||||||||
LB Commercial Corp. Asia Limited |
HKD | 18,920 | 2,439 | (1,373 | ) | 1,066 | ||||||||||||||
LB Investments PTE Ltd (4) |
USD | 456 | 456 | (204 | ) | 252 | ||||||||||||||
LB Securities Asia Limited |
HKD | 2,023 | 261 | (261 | ) | | ||||||||||||||
Lehman Brothers Japan Inc. |
JPY | 17,249 | 153 | (129 | ) | 24 | ||||||||||||||
GKI Development Inc. |
KRW | 103,363 | 90 | (79 | ) | 11 | ||||||||||||||
Lehman Brothers Australia Ltd |
AUD | 111 | 85 | | 85 | |||||||||||||||
Sail Investor PTE Ltd |
USD | 63 | 63 | (57 | ) | 6 | ||||||||||||||
Other |
505 | (198 | ) | 306 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Total |
$ | 46,270 | $ | (23,884 | ) | $ | 22,386 | |||||||||||||
|
|
|
|
Page 21
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(b) Intercompany balances among Debtors and Debtor-Controlled Entities and Non-Controlled Affiliates (continued)
(1) | Represents claims against Lehman Brothers Treasury Co B.V. that were admitted in eight different currencies. |
(2) | Includes gross claims against Lehman Brothers Bankhaus A.G. (Bankhaus) of 8.773 billion that were assigned as a result of the Harmonizing Resolution (refer to Note 9(c) Settlements with Non-Controlled Affiliates for further information), net of 7.391 billion of distributions received by owners of the claims prior to the claims assignments to LBHI. 541 million of gross claims are in the process of being assigned to LBHI and are not reflected in the above table. |
(3) | Admitted and Unsettled Filed Claims in USD includes the unsettled historical receivable balances where the filed claims have not yet been admitted. |
(4) | Included are allowed claims that are deemed subordinated against LB Asia Pacific (Singapore) PTE of $366 million and LB Investments PTE Ltd of $6 million. A filed subordinated claim by LB Holdings Scottish LP 3 of $6.139 billion against LB Holdings Intermediates 2 Ltd is fully reserved in the Balance Sheets. |
(5) | Collections to Date in USD include distributions received on the claims prior to the assignments of the claims to LBHI and Debtor-Controlled Entities. |
(6) | Other claims against Lehman Brothers Finance S.A., Lehman Brothers Bankhaus A.G., Lehman Brothers Treasury Co B.V. and Lehman Brothers International (Europe) Inc., acquired through settlements with third parties are included in Affiliate Claims receivables in the Balance Sheets (refer to Note 7 Receivables from Controlled Affiliates and Other Assets for additional information). |
Page 22
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(c) Settlements with Non-Controlled Affiliates
Page 23
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 9 Due from/to Affiliates (continued)
(c) Settlements with Non-Controlled Affiliates (continued)
Page 24
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 10 Payables to Debtors and Debtor-Controlled Entities and Other Liabilities
Payables to Debtors and Debtor-Controlled Entities and Other Liabilities includes: (i) $2.9 billion 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) $370 million of other liabilities.
The following table summarizes the main components of Payables to Debtors and Debtor-Controlled Entities and Other Liabilities as of March 31, 2016:
Debtors | Debtor- | Total Debtors and Debtor- |
||||||||||||||||||||||||||
$ in millions | LBHI | LCPI | LBSF | Other Debtors |
Total | Controlled Entities |
Controlled Entities |
|||||||||||||||||||||
Encumbered Financial Inventory (1) |
$ | | $ | | $ | | $ | | $ | | $ | 300 | $ | 300 | ||||||||||||||
Secured Notes (2) |
1,761 | 140 | | | 1,901 | | 1,901 | |||||||||||||||||||||
Fundings and other activites (3) |
281 | 260 | 20 | 10 | 571 | 176 | 747 | |||||||||||||||||||||
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Payables to Controlled Affiliates |
2,042 | 400 | 20 | 10 | 2,472 | 476 | 2,948 | |||||||||||||||||||||
Distributions on Allowed Claims (not remitted) |
90 | 0 | 0 | 0 | 90 | | 90 | |||||||||||||||||||||
Misdirected wires |
56 | | | | 56 | | 56 | |||||||||||||||||||||
Other |
108 | 13 | (0 | ) | 1 | 122 | 102 | 224 | ||||||||||||||||||||
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|||||||||||||||||||||||
Total Other Liabilities |
254 | 13 | 0 | 1 | 268 | 102 | 370 | |||||||||||||||||||||
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|
|||||||||||||||||||||||
Total Payables to Controlled Affiliates and other liabilities |
$ | 2,296 | $ | 413 | $ | 20 | $ | 11 | $ | 2,741 | $ | 577 | $ | 3,318 | ||||||||||||||
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Refer to Note 7 - Receivables from Debtors and Debtor-Controlled Entities and Other Assets for footnote explanations.
Page 25
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 11 Taxes Payable
Page 26
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 12 Liabilities Subject to Compromise
The table below presents the Companys estimates of claim values as of March 31, 2016 by claim category, and the changes in estimates since the previously filed Quarterly Financial Report as of December 31, 2015:
($ billions) | Quarter Ending March 31, 2016 | March 31, 2016 Claims Balance | ||||||||||||||||||||||||||||||||||
Claim Category |
December 31, 2015 Claims Balance |
Allowed Claims | Change in Estimated Active Claims (2) |
March 31, 2016 Claims Balance |
LBHI | LCPI | LBSF | Other Debtors |
||||||||||||||||||||||||||||
Direct Claims: |
||||||||||||||||||||||||||||||||||||
Debt |
$ | 99.2 | $ | | $ | | $ | 99.2 | $ | 98.5 | $ | | $ | | $ | 0.7 | ||||||||||||||||||||
Derivatives |
25.0 | 0.0 | (0.9 | ) | 24.1 | 0.0 | 0.0 | 21.6 | 2.4 | |||||||||||||||||||||||||||
Other |
13.6 | 0.1 | (0.1 | ) | 13.6 | 6.3 | 6.7 | 0.1 | 0.5 | |||||||||||||||||||||||||||
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Total Direct Claims |
137.9 | 0.1 | (1.0 | ) | 136.9 | 104.8 | 6.8 | 21.7 | 3.6 | |||||||||||||||||||||||||||
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|||||||||||||||||||||
Affiliate Claims Direct |
107.7 | 0.0 | 0.8 | 108.5 | 58.8 | 23.1 | 21.2 | 5.4 | ||||||||||||||||||||||||||||
Affiliate Guarantee Claims |
12.7 | 0.0 | (0.0 | ) | 12.7 | 12.7 | | | | |||||||||||||||||||||||||||
Third Party Guarantee Claims |
69.5 | 0.2 | (0.6 | ) | 69.1 | 69.1 | | | | |||||||||||||||||||||||||||
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|||||||||||||||||||||
Total Liabilities Subject to Compromise |
327.9 | 0.3 | (0.9 | ) | 327.3 | 245.5 | 29.8 | 42.9 | 9.1 | |||||||||||||||||||||||||||
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|||||||||||||||||||||
Taxes Payable |
0.2 | | | 0.2 | 0.4 | 0.0 | (0.2 | ) | (0.0 | ) | ||||||||||||||||||||||||||
Secured Claims Payable to Third parties |
2.0 | | | 2.0 | 2.0 | | | | ||||||||||||||||||||||||||||
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|||||||||||||||||||||
Total Claims |
$ | 330.2 | $ | 0.3 | $ | (0.9 | ) | $ | 329.6 | $ | 247.9 | $ | 29.9 | $ | 42.7 | $ | 9.1 | |||||||||||||||||||
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|||||||||||||||||||||
Allowed Claims |
319.6 | 0.3 | | 319.9 | 241.0 | 29.8 | 40.8 | 8.3 | ||||||||||||||||||||||||||||
Estimated Unresolved Claims to be Allowed |
10.5 | | (0.9 | ) | 9.6 | 6.9 | 0.0 | 1.9 | 0.8 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||||
Total Claims |
$ | 330.2 | $ | 0.3 | $ | (0.9 | ) | $ | 329.6 | $ | 247.9 | $ | 29.9 | $ | 42.7 | $ | 9.1 | |||||||||||||||||||
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|||||||||||||||||||||
Less : Claims Distributions and other reductions (1) |
|
(130.0 | ) | (82.2 | ) | (23.6 | ) | (16.8 | ) | (7.3 | ) | |||||||||||||||||||||||||
Post Petition Interest paid |
(0.2 | ) | | | | (0.2 | ) | |||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
Net Claim Liability at March 31, 2016 |
$ | 199.4 | $ | 165.7 | $ | 6.3 | $ | 25.9 | $ | 1.6 | ||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
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|
All values that are exactly zero are shown as -. Values between zero and $0.5 million appear as 0. Totals may not foot due to rounding.
(1) | Claim Distributions and other reductions include (i) distributions on allowed claims, (ii) reductions of the liabilities related to certain satisfied claims, (iii) the assignment of claims to their respective parents, and (iv) certain netting agreements between Debtors and Non-Controlled Affiliates. |
(2) | As part of the JPM Settlement, the JPM Derivative Claims of approximately $955 million resulted in (i) LBHI receiving allowed Class 4A Claims of $661 million in aggregate against LBSF, LBCC and LBCS in May 2016, (ii) LBCS receiving an allowed Class 4A Claim of $29.7 million against LBSF in May 2016, and (iii) a reduction in Liabilities Subject to Compromise at LBSF, LBCS and LBCC of approximately $264 million. |
Page 27
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 12 Liabilities Subject to Compromise (continued)
(3) | Claims Distributions and other reductions and Post-Petition Interest paid include: |
($ in billions) | Total Debtors |
LBHI | LCPI | LBSF | Other Debtors |
|||||||||||||||
|
|
|||||||||||||||||||
Claims Distributions and Post Petition Interest paid |
$ | 106.9 | $ | 69.6 | $ | 18.0 | $ | 13.0 | $ | 6.3 | ||||||||||
Other Reductions |
||||||||||||||||||||
Intercompany Funding Adjustments |
7.9 | | 4.1 | 3.0 | 0.8 | |||||||||||||||
Plan Adjustments |
(0.6 | ) | (2.6 | ) | 1.0 | 0.8 | 0.3 | |||||||||||||
Assignment of Claims (a) |
5.4 | 5.3 | 0.1 | | | |||||||||||||||
Third Party Guarantees Satisfied (b) |
8.4 | 8.4 | | | | |||||||||||||||
Freddie Mac Settlement |
1.1 | 1.1 | | | | |||||||||||||||
Convenience Claims and other |
1.2 | 0.5 | 0.5 | 0.1 | 0.1 | |||||||||||||||
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|||||||||||
Total Claims Distributions and other reductions and Post Petition Interest paid |
$ | 130.2 | $ | 82.2 | $ | 23.6 | $ | 16.8 | $ | 7.5 | ||||||||||
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(a) | Claims assigned by Non-Controlled Affiliates (primarily LBSN of $3.2 billion and LB UK Financing Limited of $2.1 billion), net of distributions, to LBHI in connection with settlement agreements with Non-Controlled Affiliates. |
(b) | Allowed Guarantee claims (primarily Bankhaus $7.9 billion, LOTC $0.2 billion and LBCC $0.2 billion), net of distributions, deemed satisfied as a result of distributions to creditors from the combination of the primary obligor and LBHI as the guarantor. |
Page 28
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 12 Liabilities Subject to Compromise (continued)
Page 29
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 13 Legal Proceedings
Page 30
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Page 31
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Note 13 Legal Proceedings (continued)
Previous litigation actions with no significant updates since December 31, 2015
Page 32
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Page 33
Quarterly Financial Report as of March 31, 2016 (Unaudited)
III. Balance Sheets
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of March 31, 2016
(Unaudited)
($ 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. |
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 |
|||||||||||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 13 | $ | 34 | $ | (0 | ) | $ | 5 | $ | 5 | $ | 94 | $ | 147 | $ | 17 | $ | (0 | ) | $ | 10 | $ | 324 | $ | 257 | $ | 581 | ||||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
3,534 | 1,056 | 102 | 84 | 2 | 1 | 3 | 22 | 0 | 149 | 4,953 | 38 | 4,991 | |||||||||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
34 | 0 | | | | | | 195 | | | 229 | 267 | 497 | |||||||||||||||||||||||||||||||||||||||
Loans and Residential Real Estate |
62 | | | | | | | 88 | | | 149 | 31 | 180 | |||||||||||||||||||||||||||||||||||||||
Principal investments |
0 | | | | | | | 3 | | | 3 | 1,099 | 1,102 | |||||||||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| 363 | 30 | | 0 | | | | | | 393 | 1 | 393 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Financial instruments and other inventory positions |
96 | 363 | 30 | | 0 | | | 286 | | | 775 | 1,398 | 2,172 | |||||||||||||||||||||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
1,229 | | | | | | | | | | 1,229 | | 1,229 | |||||||||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
635 | 903 | 0 | 246 | 552 | 140 | 20 | 330 | 0 | 5 | 2,831 | 607 | 3,438 | |||||||||||||||||||||||||||||||||||||||
Investments in Affiliates |
(27,608 | ) | 247 | | | | | | 327 | | (247 | ) | (27,281 | ) | (21,980 | ) | (49,262 | ) | ||||||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
29,405 | 512 | 331 | 15 | 0 | | 1 | 4,944 | 0 | 253 | 35,461 | 4,111 | 39,572 | |||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
19,448 | 1,252 | 126 | 225 | | | | 136 | | 17 | 21,205 | 1,181 | 22,386 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Due from Affiliates |
48,853 | 1,764 | 458 | 241 | 0 | | 1 | 5,080 | 0 | 270 | 56,666 | 5,292 | 61,958 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Assets |
$ | 26,751 | $ | 4,366 | $ | 589 | $ | 576 | $ | 559 | $ | 235 | $ | 172 | $ | 6,061 | $ | 0 | $ | 186 | $ | 39,496 | $ | (14,389 | ) | $ | 25,107 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 2,296 | $ | 20 | $ | 0 | $ | 0 | $ | | $ | 0 | $ | 0 | $ | 413 | $ | 0 | $ | 10 | $ | 2,741 | $ | 577 | $ | 3,318 | ||||||||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
| | | | | | | 0 | | | 0 | 12,368 | 12,368 | |||||||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | | | | | | 468 | 468 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Due to Affiliates |
| | | | | | | 0 | | | 0 | 12,837 | 12,837 | |||||||||||||||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
2,036 | | | | | | | | | | 2,036 | | 2,036 | |||||||||||||||||||||||||||||||||||||||
Taxes Payable |
389 | (188 | ) | (22 | ) | (6 | ) | 37 | (13 | ) | 1 | 25 | | (2 | ) | 221 | 93 | 314 | ||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
163,251 | 26,052 | 365 | 348 | 41 | 0 | 1 | 6,253 | 171 | 633 | 197,116 | 0 | 197,116 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Liabilities |
167,972 | 25,884 | 343 | 342 | 78 | (13 | ) | 2 | 6,691 | 171 | 641 | 202,113 | 13,508 | 215,621 | ||||||||||||||||||||||||||||||||||||||
Stockholders Equity |
(141,220 | ) | (21,518 | ) | 246 | 234 | 481 | 247 | 170 | (630 | ) | (171 | ) | (455 | ) | (162,617 | ) | (27,896 | ) | (190,513 | ) | |||||||||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | 26,751 | $ | 4,366 | $ | 589 | $ | 576 | $ | 559 | $ | 235 | $ | 172 | $ | 6,061 | $ | 0 | $ | 186 | $ | 39,496 | $ | (14,389 | ) | $ | 25,107 | |||||||||||||||||||||||||
|
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|
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|
|
|
|
|
See accompanying Notes to Balance Sheets
Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) | Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries. |
(2) | Certain Other Debtors Balance Sheets are presented on page 35. |
(3) | Certain Debtor-Controlled Entities Balance Sheets are presented on page 36. |
Page 34
Quarterly Financial Report as of March 31, 2016 (Unaudited)
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of March 31, 2016 (Certain Other Debtors)
(Unaudited)
($ in millions) | Structured Asset Securities Corporation 09-10558 |
East Dover Ltd 08-13908 |
Lehman Scottish Finance LP 08-13904 |
LB Rose Ranch LLC 09-10560 |
BNC Mortgage LLC 09-10137 |
MERIT LLC 09-17331 |
Other Debtors (1) |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Cash and short-term investments |
$ | 0 | $ | (0 | ) | $ | | $ | (1 | ) | $ | 11 | $ | 0 | $ | 10 | ||||||||||||
Cash and short-term investments pledged or restricted |
142 | 0 | 2 | 1 | 4 | 1 | 149 | |||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||
Commercial Real Estate |
| | | | | | | |||||||||||||||||||||
Loans and Residential Real Estate |
| | | | | | | |||||||||||||||||||||
Principal investments |
| | | | | | | |||||||||||||||||||||
Derivative Receivables and Related Assets |
| | | | | | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Financial instruments and other inventory positions |
| | | | | | | |||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
| | | | | | | |||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
0 | 1 | | 4 | | | 5 | |||||||||||||||||||||
Investments in Affiliates |
| | (247 | ) | | | | (247 | ) | |||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
151 | | 72 | | 1 | 28 | 253 | |||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | 17 | 17 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Due from Affiliates |
151 | | 72 | | 1 | 45 | 270 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
$ | 293 | $ | 1 | $ | (173 | ) | $ | 4 | $ | 16 | $ | 46 | $ | 186 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 4 | $ | 0 | $ | 2 | $ | 1 | $ | 4 | $ | 0 | $ | 10 | ||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||
Debtor-Controlled Entities |
| | | | | | | |||||||||||||||||||||
Non-Controlled Affiliates |
| | | | | | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Due to Affiliates |
| | | | | | | |||||||||||||||||||||
Secured Claims Payable to Third Parties |
| | | | | | | |||||||||||||||||||||
Taxes Payable |
(2 | ) | | | | (0 | ) | | (2 | ) | ||||||||||||||||||
Liabilities Subject to Compromise |
411 | | | 2 | 4 | 217 | 633 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Liabilities |
412 | 0 | 2 | 3 | 8 | 217 | 641 | |||||||||||||||||||||
Stockholders Equity
|
|
(119
|
)
|
|
1
|
|
|
(175
|
)
|
|
1
|
|
|
9
|
|
|
(171
|
)
|
|
(455
|
)
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Liabilities and Stockholders Equity |
$ | 293 | $ | 1 | $ | (173 | ) | $ | 4 | $ | 16 | $ | 46 | $ | 186 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
See accompanying Notes to Balance Sheets |
Note: All values that are exactly zero are shown as . Values between zero and $500,000 appear as 0.
(1) | Balances for Debtors do not reflect the impact of eliminations of intercompany balances and investments in subsidiaries. |
Page 35
Quarterly Financial Report as of March 31, 2016 (Unaudited)
LEHMAN BROTHERS HOLDINGS INC. and Other Debtors and Debtor-Controlled Entities
Balance Sheets As of March 31, 2016 (Debtor-Controlled Entities)
(Unaudited)
($ 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) |
LB U.K. Holdings (Delaware) Inc. |
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 |
$ | 41 | $ | 7 | $ | 10 | $ | 85 | $ | 8 | $ | 0 | $ | 0 | $ | 3 | $ | 1 | $ | 104 | $ | | $ | 257 | ||||||||||||||||||||||||
Cash and short-term investments pledged or restricted |
0 | 6 | 4 | 2 | 4 | | | 1 | | 22 | | 38 | ||||||||||||||||||||||||||||||||||||
Financial instruments and other inventory positions: |
||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate |
(14 | ) | 32 | | | 205 | (0 | ) | (0 | ) | 20 | | 25 | | 267 | |||||||||||||||||||||||||||||||||
Loans and Residential Real Estate |
30 | 0 | 1 | 0 | | | | | | | | 31 | ||||||||||||||||||||||||||||||||||||
Principal investments |
0 | | 829 | | | | (0 | ) | 2 | | 268 | | 1,099 | |||||||||||||||||||||||||||||||||||
Derivative Receivables and Related Assets |
| | | | | | | | | 1 | | 1 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Financial instruments and other inventory positions |
16 | 32 | 830 | 0 | 205 | (0 | ) | (0 | ) | 22 | | 294 | | 1,398 | ||||||||||||||||||||||||||||||||||
Subrogated Receivables from Affiliates and Third Parties |
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Receivables from Debtors and Debtor-Controlled Entities and other assets |
213 | 0 | 33 | 69 | 0 | 11 | 65 | 1 | | 325 | (110 | ) | 607 | |||||||||||||||||||||||||||||||||||
Investments in Affiliates |
(26,814 | ) | 1 | 0 | 9 | | (86 | ) | 60 | (221 | ) | | (163 | ) | 5,235 | (21,980 | ) | |||||||||||||||||||||||||||||||
Due from Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||
Debtors and Debtor- Controlled Entities |
3,272 | | 548 | | | 177 | 63 | 641 | | 621 | (1,210 | ) | 4,111 | |||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
0 | | 1 | | | 7 | 363 | 29 | 749 | 32 | | 1,181 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Due from Affiliates |
3,272 | | 548 | | | 184 | 426 | 670 | 749 | 653 | (1,210 | ) | 5,292 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Assets |
$ | (23,272 | ) | $ | 46 | $ | 1,424 | $ | 164 | $ | 216 | $ | 109 | $ | 551 | $ | 474 | $ | 750 | $ | 1,233 | $ | 3,915 | $ | (14,389 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Liabilities and Stockholders Equity Liabilities |
||||||||||||||||||||||||||||||||||||||||||||||||
Payables to Debtors and Debtor-Controlled Entities and other liabilities |
$ | 3 | $ | 3 | $ | 308 | $ | 64 | $ | 1 | $ | 0 | $ | 1 | $ | 48 | $ | | $ | 261 | $ | (112 | ) | $ | 577 | |||||||||||||||||||||||
Due to Affiliates: |
||||||||||||||||||||||||||||||||||||||||||||||||
Debtor-Controlled Entities |
3,067 | | 3,287 | 71 | | 842 | 204 | 3,110 | 997 | 2,000 | (1,210 | ) | 12,368 | |||||||||||||||||||||||||||||||||||
Non-Controlled Affiliates |
1 | | 25 | | | | 74 | 8 | | 361 | | 468 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Due to Affiliates |
3,068 | | 3,312 | 71 | | 842 | 278 | 3,118 | 997 | 2,361 | (1,210 | ) | 12,837 | |||||||||||||||||||||||||||||||||||
Secured Claims Payable to Third Parties |
| | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||
Taxes Payable |
68 | | 5 | | | 10 | (18 | ) | 27 | | | | 93 | |||||||||||||||||||||||||||||||||||
Liabilities Subject to Compromise |
| | | | | | | | | 0 | | 0 | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Liabilities |
3,139 | 3 | 3,626 | 135 | 1 | 852 | 262 | 3,193 | 997 | 2,622 | (1,322 | ) | 13,508 | |||||||||||||||||||||||||||||||||||
Stockholders Equity |
(26,411 | ) | 43 | (2,202 | ) | 29 | 215 | (743 | ) | 290 | (2,719 | ) | (247 | ) | (1,389 | ) | 5,237 | (27,896 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Liabilities and Stockholders Equity |
$ | (23,272 | ) | $ | 46 | $ | 1,424 | $ | 164 | $ | 216 | $ | 109 | $ | 551 | $ | 474 | $ | 750 | $ | 1,233 | $ | 3,915 | $ | (14,389 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
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 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 wholly owned subsidiaries that are Debtor entities, 314 Commonwealth Ave Inc, and Pami ALI LLC. |
(3) | Entities are reflected on a consolidated basis, e.g. Property Asset Management Inc. includes its wholly owned subsidiary, Orbit RE LLC. |
Page 36
Quarterly Financial Report as of March 31, 2016 (Unaudited)
IV. Accompanying Schedules
Commercial Real Estate by Product Type (1)
$ in millions |
Lehman Brothers Holdings Inc. |
Lehman Commercial Paper Inc. |
Total Debtor Entities |
Property Asset Management Inc. |
PAMI Holdings LLC |
Other Debtor- Controlled Entities |
Total LBHI Controlled Entities |
Cost and Unpaid Principal Balances (2) |
||||||||||||||||||||||||||||
Commercial Real Estate |
||||||||||||||||||||||||||||||||||||
North America |
||||||||||||||||||||||||||||||||||||
Whole loans Senior |
$ | 0 | $ | 8 | $ | 9 | $ | | $ | | $ | | $ | 9 | $ | 22 | ||||||||||||||||||||
Equity |
| | | 22 | 151 | 9 | 182 | 322 | ||||||||||||||||||||||||||||
Real Estate Owned and Other |
34 | 63 | 97 | 10 | 54 | 10 | 171 | 853 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Subtotal |
34 | 71 | 105 | 32 | 205 | 19 | 361 | 1,197 | ||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||
Whole loans B-notes/Mezzanine |
| 72 | 72 | | | | 72 | 172 | ||||||||||||||||||||||||||||
Equity |
| 52 | 52 | | | 11 | 63 | 181 | ||||||||||||||||||||||||||||
Other |
| | | | | 1 | 1 | 4 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Subtotal |
| 124 | 124 | | | 12 | 136 | 358 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Commercial Real Estate |
$ | 34 | $ | 195 | $ | 230 | $ | 32 | $ | 205 | $ | 31 | $ | 497 | $ | 1,555 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
Notes:
(1) | Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | Cost information primarily includes: (i) for whole loans and corporate loans, the remaining outstanding principal balance; (ii) for equity, the total acquisition amount net of distributions deemed return of capital; (iii) for REO, the cost/unpaid principal balance as determined in (i) or (ii) as of the date of ownership of the property plus or minus principal balance changes subsequent to ownership. There are 5 portfolio investments recorded at zero recovery value with a cost/ unpaid principal balance of approximately $48 million that are not included in the schedule above. |
Page 37
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Commercial Real Estate By Property Type and Region (1)
$ in millions |
North America |
Europe | Total | Cost and Unpaid Principal Balances (2) |
||||||||||||
Commercial Real Estate |
||||||||||||||||
Senior Whole Loans |
||||||||||||||||
Land/Other |
$ | 9 | $ | | $ | 9 | $ | 22 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Senior Whole Loans by Type |
9 | | 9 | 22 | ||||||||||||
B-Note/Mezz Whole Loans |
||||||||||||||||
Office/Industrial |
| 72 | 72 | 172 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total B-Notes/Mezz Whole Loans by Type |
| 72 | 72 | 172 | ||||||||||||
Equity |
||||||||||||||||
Office/Industrial |
33 | | 33 | 25 | ||||||||||||
Hotel |
| 11 | 11 | 74 | ||||||||||||
Multi-family |
0 | | 0 | | ||||||||||||
Mixed-use |
| 52 | 52 | 108 | ||||||||||||
Condominium |
77 | | 77 | 234 | ||||||||||||
Land/Other |
72 | | 72 | 63 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Equity by Type |
182 | 63 | 245 | 503 | ||||||||||||
Real Estate Owned |
||||||||||||||||
Hotel |
78 | | 78 | 124 | ||||||||||||
Land |
86 | | 86 | 673 | ||||||||||||
Other |
7 | 1 | 8 | 60 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Real Estate Owned by Type |
171 | 1 | 171 | 857 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Commercial Real Estate |
$ | 361 | $ | 136 | $ | 497 | $ | 1,555 | ||||||||
|
|
|
|
|
|
|
|
Notes:
(1) | Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | Cost information primarily includes: (i) for whole loans and corporate loans, the remaining outstanding principal balance; (ii) for equity, the total acquisition amount net of distributions deemed return of capital; (iii) for REO, the cost/unpaid principal balance as determined in (i) or (ii) as of the date of ownership of the property plus or minus principal balance changes subsequent to ownership. There are 5 portfolio investments recorded at zero recovery value with a cost/ unpaid principal balance of approximately $48 million that are not included in the schedule above. |
Page 38
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Loans (by Maturity Date) and Residential Real Estate (1)
$ in millions | Debtor Entities | |||||||||||||||
Maturity Date by Year |
Lehman Brothers Holdings Inc. |
Lehman Commercial Paper Inc. |
Debtor - Controlled Entities |
Total LBHI- Controlled Entities |
||||||||||||
Notional (2) | ||||||||||||||||
2016 |
1 | | 24 | 26 | ||||||||||||
2017 and over |
5 | 306 | | 311 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Loans |
6 | 306 | 24 | 336 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Residential Real Estate (3) |
188 | 0 | 38 | 226 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Loans and Residential Real Estate |
$ | 194 | $ | 306 | $ | 63 | $ | 563 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Recovery Value | ||||||||||||||||
2016 |
1 | | 20 | 21 | ||||||||||||
2017 and over (4) |
0 | 87 | | 87 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal Loans |
1 | 87 | 20 | 108 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Equity positionsLoans |
32 | 1 | 1 | 33 | ||||||||||||
Residential Real Estate |
29 | 0 | 10 | 39 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Loans and Residential Real Estate |
$ | 62 | $ | 88 | $ | 31 | $ | 180 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Notes:
(1) | This schedule reflects loans and residential real estate assets that are included on the Balance Sheets. Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | Represents the remaining outstanding principal balance on only Loans by stated maturity dates. |
(3) | Cost information primarily represents: (i) for whole loans (RV $0.2 million / Cost $0.3 million), the remaining outstanding or unpaid principal balance; and (ii) for mortgage backed securities (MBS) (RV $37.6 million / Cost $225.8 million), the initial Class Principal amount. MBS consists of Excess Spread, Residual, Interest-Only and Subordinated tranches. Cost information is not included for legal claims, mortgage servicing rights and MBS with zero recovery value. |
(4) | Includes approximately $37 million in LCPI related to defaulted securities with past maturity dates. |
Page 39
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Private Equity / Principal Investments by Legal Entity and Product Type
$ in millions |
Total (1) | Assets held for the benefit of LCPI (3) |
Total per Balance Sheets |
|||||||||
By Legal Entity |
||||||||||||
Debtors: |
||||||||||||
Lehman Brothers Holdings Inc. |
$ | 0 | $ | | $ | 0 | ||||||
Lehman Commercial Paper Inc. |
303 | (300 | ) | 3 | ||||||||
Total Debtors |
303 | (300 | ) | 3 | ||||||||
|
|
|
|
|
|
|||||||
Debtor-Controlled: |
||||||||||||
LB I Group Inc. (2) |
529 | 300 | 829 | |||||||||
Other Debtor-Controlled |
270 | | 270 | |||||||||
|
|
|
|
|
|
|||||||
Total Debtor-Controlled |
799 | 300 | 1,099 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 1,102 | $ | | $ | 1,102 | ||||||
|
|
|
|
|
|
|||||||
By Product Type |
||||||||||||
Private Equity / Diversified Funds |
$ | 847 | ||||||||||
Real Estate Funds |
248 | |||||||||||
Other |
7 | |||||||||||
|
|
|||||||||||
Total |
$ | 1,102 | ||||||||||
|
|
|||||||||||
|
|
|||||||||||
Investments at cost (4) |
$ | 1,329 | ||||||||||
Unpaid Principal Balances (5) |
$ | 4 |
Notes:
(1) | The amounts include the unencumbered assets held by a legal entity and the economic interests in the assets held by another legal entity. Refer to the accompanying Notes to the Balance Sheets for further discussion on valuation and additional disclosures. |
(2) | LB I Group Inc. (read LB one Group Inc.) is a major Debtor-Controlled entity. LB I Group Inc. is presented on a consolidated basis. |
(3) | Assets held for the benefit of LCPI represents a reconciliation of the assets encumbered from LB I Group to LCPI. |
(4) | Cost information primarily includes: (i) for direct equity investments and hedge funds, the total amount funded net of distributions deemed return of capital; (ii) for partnership interests with no redemptions, the original amount funded; (iii) for partnership interests with redemptions or distributions, the ratio of cost to recovery value for the underlying portfolio assets applied to the Net Asset Value for the Companys positions; and (iv) value for assets that have been recorded at de minimis recovery value amounts. |
(5) | Represents the remaining outstanding principal balance on corporate loans. |
Page 40
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Derivative Assets and Liabilities (1)
$ in millions | Lehman Brothers Holdings Inc. |
LB 745 LLC | Lehman Brothers Special Financing Inc. |
Lehman Brothers Commodity Services Inc. |
Lehman Brothers OTC Derivatives Inc. |
Lehman Brothers Commercial Corporation |
Lehman Commercial Paper Inc. |
Lehman Brothers Financial Products Inc. |
Lehman Brothers Derivative Products Inc. |
Total Debtors |
||||||||||||||||||||||||||||||
Assets - Receivables, Net |
||||||||||||||||||||||||||||||||||||||||
Open |
$ | | $ | | $ | 71 | $ | | $ | | $ | | $ | | $ | | $ | | $ | 71 | ||||||||||||||||||||
Terminated / Matured |
| | 263 | 30 | | | | | | 292 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
| | 334 | 30 | | | | | | 364 | ||||||||||||||||||||||||||||||
Other Derivative Related Assets (2) |
| | 29 | | | | | | | 29 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total Derivatives and Related Assets |
$ | | $ | | $ | 363 | $ | 30 | $ | | $ | | $ | | $ | | $ | | $ | 393 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
# of Counterparty contracts |
||||||||||||||||||||||||||||||||||||||||
Open |
| | 67 | | | | | | | 67 | ||||||||||||||||||||||||||||||
Termed / Matured |
| | 230 | 2 | | 5 | 1 | | 2 | 240 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
| | 297 | 2 | | 5 | 1 | | 2 | 307 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
SPV Receivables (3) |
$ | | $ | | $ | 35 | $ | | $ | | $ | | $ | | $ | | $ | | $ | 35 | ||||||||||||||||||||
LiabilitiesPayables |
||||||||||||||||||||||||||||||||||||||||
Agreed (4) |
$ | (22 | ) | $ | (2 | ) | $ | (20,170 | ) | $ | (1,347 | ) | $ | (494 | ) | $ | (385 | ) | $ | (39 | ) | $ | (57 | ) | $ | (77 | ) | $ | (22,593 | ) | ||||||||||
Pending Resolution (5) |
| | (1,424 | ) | (40 | ) | (0 | ) | (28 | ) | | | | (1,492 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
$ | (22 | ) | $ | (2 | ) | $ | (21,594 | ) | $ | (1,387 | ) | $ | (494 | ) | $ | (413 | ) | $ | (39 | ) | $ | (57 | ) | $ | (77 | ) | $ | (24,085 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
# of Counterparty contracts |
4 | 1 | 2,357 | 250 | 161 | 191 | 9 | 14 | 93 | 3,080 |
Notes:
(1) | Refer to the accompanying Notes to the Balance Sheets for further discussion regarding derivative amounts recorded. Derivatives liabilities are presented prior to distributions on allowed claims. |
(2) | Amounts primarily include notes in various special purpose vehicles and deposits with various brokers for OTC hedges. |
(3) | Represents the portion of derivatives receivables resulting from transactions with counterparties deemed as special purpose vehicles including receivables from entities that structurally subordinate the rights of the Debtor. |
(4) | Agreed is defined as claims that are recorded at values agreed upon with counterparties and classified as allowed or accepted as filed. |
(5) | Pending Resolution are recorded at expected claim amounts estimated by the Company. |
Page 41
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Significant Restructurings, Settlements, Sales, Wind-down, or Liquidations
December 31, 2015 March 31, 2016
$ millions |
Actual Cash Collected |
Post-Eighth Distribution Cash Flow Estimates (1) |
12/31/2015 Balance Sheets Value (2) |
Realized Gain / (Loss) Relative to Post Eighth Distribution Cash Flow Estimate |
Realized Gain / (Loss) Relative to 12/31/15 Balance Sheets Value |
|||||||||||||||
Loans and Residential Real Estate |
||||||||||||||||||||
Other Loans |
$ | 9 | $ | 2 | $ | 2 | $ | 7 | $ | 7 | ||||||||||
Other Residential Real Estate |
41 | 17 | 32 | 24 | 9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Loans and Residential Real Estate |
$ | 50 | $ | 19 | $ | 34 | $ | 31 | $ | 16 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Private Equity / Principal Investments |
||||||||||||||||||||
Other Direct sales |
$ | 1 | $ | 0 | $ | 0 | $ | 1 | $ | 1 | ||||||||||
GP and LP Stakes in PE and Hedge Funds |
71 | 71 | 71 | (0 | ) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Private Equity / Principal Investments |
$ | 72 | $ | 71 | $ | 71 | $ | 1 | $ | 1 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Derivatives |
||||||||||||||||||||
Other sales |
$ | 68 | $ | 15 | $ | 49 | $ | 53 | $ | 19 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Derivatives |
$ | 68 | $ | 15 | $ | 49 | $ | 53 | $ | 19 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Real Estate |
||||||||||||||||||||
Other sales |
$ | 177 | $ | 172 | $ | 174 | $ | 4 | $ | 3 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Real Estate |
$ | 177 | $ | 172 | $ | 174 | $ | 4 | $ | 3 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Significant Monetizations |
$ | 367 | $ | 277 | $ | 328 | $ | 89 | $ | 38 | ||||||||||
|
|
|
|
|
|
|
|
|
|
All values that are exactly zero are shown as -. Values between zero and $0.5 million appear as 0. Totals may not foot due to rounding.
(1) | Represents estimated recoveries reflected in the Post Eighth Distribution Cash Flow Estimates for the asset. |
(2) | Represents the recorded value reported on the prior period Balance Sheets (as of December 31, 2015) for the asset. |
Page 42
Quarterly Financial Report as of March 31, 2016 (Unaudited)
V. Post-Ninth Distribution Cash Flow Estimates
Table of Contents
A. |
Basis of Presentation |
44 | ||||
B. |
Highlights |
47 | ||||
C. |
Summary |
48 | ||||
D. |
Recoveries from Non-Controlled Affiliates |
49 | ||||
E. |
Operating Expenses |
51 | ||||
F. |
Debtors and Debtor-Controlled Entities Schedules |
53 |
Page 43
Quarterly Financial Report as of March 31, 2016 (Unaudited)
A. Basis of Presentation
Page 44
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Key Assumptions (continued)
Page 45
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Presentation Differences
Page 46
Quarterly Financial Report as of March 31, 2016 (Unaudited)
B. Highlights
Estimated Recoveries
Total estimates of aggregate gross recoveries, before operating disbursements and payments in satisfaction of secured, priority, administrative and unsecured claims of Debtors and liabilities of Debtor-Controlled Entities, increased by $2.0 billion to $98.0 billion in the Post-D9 Cash Flow Estimates as compared to $96.0 billion in the Post-D8 CFE. Net of operating disbursements, total estimated net recoveries increased by $2.0 billion to $94.4 billion. This increase in the Companys estimated recoveries was primarily driven by recoveries related to the JPM Settlement, which were excluded from the Post-D8 CFE, as well as increased estimated recoveries from Non-Controlled Affiliates.
(*) | CFO refers to Cash From Operations |
(1) | Refer to the Responses to Questions Received From Creditors posted to www.lehman-docket.com on October 30, 2014, for a reconciliation of these figures. |
(2) | Estimates included in DS Exhibit 7, adjusted for certain Presentation Adjustments (refer to the 2012+ CFE for further information). |
(3) | The Operating Expense estimates in DS Exhibit 7 reflected the estimated costs for expected personnel and infrastructure requirements to support the workforce for each year from 2011 to 2014. These Operating Expense estimates did not include estimates for costs beyond 2014. |
Page 47
Quarterly Financial Report as of March 31, 2016 (Unaudited)
C. Summary
The Company estimates that Total Adjusted Post-D9 CFE Cash From Operations will be $6.9 billion, an increase in estimates of $2.0 billion compared to estimates presented in the Post-D8 CFE. This increase is primarily driven by (i) the inclusion of $1.42 billion related to the JPM Settlement, the estimated recoveries of which were excluded from prior disclosures, and (ii) a $0.4 billion increase in estimated Recoveries from Non-Controlled Affiliates, primarily due to increased estimated recoveries from Bankhaus, LBT, LBF, and Lehman Brothers Asia Holdings Ltd (LBAH).
These increases were partially offset by (i) a $110 million reduction in estimates for the Private Equity / Principal Investments portfolio, driven by mark-to-market changes on publicly held positions, and (ii) a $27 million increase in Operating Expenses, largely driven by anticipated increases in the resources required for the Companys litigation activities and increased estimates for formula-driven Incentive Fees.
Cash activities between October 2, 2015 and May 31, 2016 included (i) the collection of $1.42 billion related to the JPM Settlement, (ii) the collection of $0.7 billion of recoveries from Non-Controlled Affiliates, driven by recoveries from LBAH, LBF, Bankhaus, and Lehman Brothers Commercial Corp. Asia Ltd, and (iii) the monetization of inventory of $0.9 billion, primarily in the Private Equity/Principal Investments and Commercial Real Estate portfolios, partially offset by (iv) operating expenses of $204 million, including professional fees related to the Companys claims mitigation and litigation activities.
Of the $2.0 billion of remaining Estimated Net Receipts shown in the Adjusted Post-D9 CFE, the Company anticipates that over 59% will be collected by the end of 2016.
($ in millions) | Post-D8 Cash Flow Estimates |
Less: Cash Activity 10/2/15-3/31/16 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments (a) |
Post-D9 Cash Flow Estimates |
Less: Cash Activity 4/1/16-5/31/16 and D10 |
Adjusted Post-D9 CFE |
|||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||
Commercial Real Estate |
$ | 690 | $ | (220 | ) | $ | 27 | $ | | $ | 497 | $ | (23 | ) | $ | 474 | ||||||||||||
Loans (Corporate & Residential) |
183 | (46 | ) | 43 | | 180 | (56 | ) | 124 | |||||||||||||||||||
Private Equity / Principal Investments |
1,392 | (180 | ) | (110 | ) | | 1,102 | (88 | ) | 1,014 | ||||||||||||||||||
Derivatives |
186 | (150 | ) | 361 | (4 | ) | 393 | (295 | ) | 99 | ||||||||||||||||||
Other |
246 | (79 | ) | 1,300 | 47 | 1,514 | (1,199 | ) | 315 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 2,696 | $ | (673 | ) | $ | 1,621 | $ | 43 | $ | 3,687 | $ | (1,661 | ) | $ | 2,026 | ||||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||
Europe |
$ | 4,275 | $ | (213 | ) | $ | 285 | $ | (43 | ) | $ | 4,304 | $ | (127 | ) | $ | 4,177 | |||||||||||
Asia |
1,654 | (370 | ) | 76 | | 1,360 | (0 | ) | 1,360 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 5,930 | $ | (583 | ) | $ | 360 | $ | (43 | ) | $ | 5,664 | $ | (127 | ) | $ | 5,537 | |||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Professional Fees |
$ | (334 | ) | $ | 69 | $ | 7 | $ | (1 | ) | $ | (258 | ) | $ | 21 | $ | (237 | ) | ||||||||||
Compensation & Benefits |
(228 | ) | 73 | (21 | ) | (3 | ) | (179 | ) | 8 | (171 | ) | ||||||||||||||||
Incentive Fees |
(163 | ) | 9 | (17 | ) | | (171 | ) | 2 | (169 | ) | |||||||||||||||||
Other Administrative Expenses |
(94 | ) | 17 | 4 | 4 | (70 | ) | 5 | (65 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Operating Expenses |
$ | (819 | ) | $ | 168 | $ | (27 | ) | $ | | $ | (678 | ) | $ | 36 | $ | (641 | ) | ||||||||||
Total Cash From Operations (CFO) |
$ | 7,806 | $ | (1,089 | ) | $ | 1,955 | $ | | $ | 8,673 | $ | (1,751 | ) | $ | 6,921 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes the reclassification of $43 million from Recoveries from Non-Controlled Affiliates to Other related to recoveries from two entities, SMF No. 1 Limited and StepStone Mortgage Funding Ltd, which were transferred to the Company between Post-D8 CFE and Post-D9 Cash Flow Estimates. |
Page 48
Quarterly Financial Report as of March 31, 2016 (Unaudited)
D. Recoveries from Non-Controlled Affiliates
The Company estimates that Adjusted Post-D9 CFE Recoveries from Non-Controlled Affiliates will be $5.5 billion, which reflects an increase in estimates of $0.4 billion compared to Total Recoveries from Non-Controlled Affiliates presented in the Post-D8 CFE.
($ in millions) | Post-D8 Cash Flow Estimates |
Less: Prior Period Activity |
Estimate Changes |
Transfers, Reclassifications, Adjustments |
Post-D9 Cash Flow Estimates |
Less: Cash Activity 4/1/16-5/31/16 and D10 |
Adjusted Post-D9 CFE |
|||||||||||||||||||||
Recoveries from Non-Controlled Affiliates |
||||||||||||||||||||||||||||
Europe |
$ | 4,275 | $ | (213 | ) | $ | 285 | $ | (43 | ) | $ | 4,304 | $ | (127 | ) | $ | 4,177 | |||||||||||
Asia |
1,654 | (370 | ) | 76 | | 1,360 | (0 | ) | 1,360 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total - Recoveries from Non-Controlled Affiliates |
$ | 5,930 | $ | (583 | ) | $ | 360 | $ | (43 | ) | $ | 5,664 | $ | (127 | ) | $ | 5,537 |
Page 49
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Recoveries from Non-Controlled Affiliates (continued)
Page 50
Quarterly Financial Report as of March 31, 2016 (Unaudited)
E. Operating Expenses
The Company estimates that Adjusted Post-D9 CFE Operating Expenses will be $0.6 billion, which reflects an increase in estimates of $27 million compared to Total Operating Expenses presented in the Post-D8 CFE.
Less: | ||||||||||||||||||||||||||||
Post-D8 | Less: | Post-D9 | Cash Activity | |||||||||||||||||||||||||
Cash Flow | Prior Period | Estimate | Reclasses / | Cash Flow | 4/1/16-5/31/16 | Adjusted | ||||||||||||||||||||||
($ in millions) | Estimates | Activity | Changes | Transfers | Estimates | and D10 | Post-D9 CFE | |||||||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Professional Fees |
$ | (334 | ) | $ | 69 | $ | 7 | $ | (1 | ) | $ | (258 | ) | $ | 21 | $ | (237 | ) | ||||||||||
Compensation and Benefits |
(228 | ) | 73 | (21 | ) | (3 | ) | (179 | ) | 8 | (171 | ) | ||||||||||||||||
Incentive Fees |
(163 | ) | 9 | (17 | ) | | (171 | ) | 2 | (169 | ) | |||||||||||||||||
Other Administrative Expenses |
(94 | ) | 17 | 4 | 4 | (70 | ) | 5 | (65 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total - Operating Expenses |
$ | (819 | ) | $ | 168 | $ | (27 | ) | $ | | $ | (678 | ) | $ | 36 | $ | (641 | ) |
Page 51
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Operating Expenses (continued)
Page 52
Quarterly Financial Report as of March 31, 2016 (Unaudited)
F. Debtors and Debtor-Controlled Entities Schedules
LBHI
The Company estimates that Total Adjusted Post-D9 CFE Cash From Operations, including Intercompany Receipts, at LBHI will be $7.6 billion, which reflects an increase in estimates of $2.0 billion compared to estimates presented in the Post-D8 CFE.
($ in millions) | Post-D8 Cash Flow Estimates |
Less: Cash Activity 10/2/15-3/31/16 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments (a) |
Post-D9 Cash Flow Estimates |
Less: Cash Activity 4/1/16-5/31/16 and D10 (b) |
Adjusted Post-D9 CFE |
|||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||
Commercial Real Estate |
$ | 61 | $ | (27 | ) | $ | 0 | $ | | $ | 34 | $ | (0 | ) | $ | 34 | ||||||||||||
Loans (Corporate & Residential) |
67 | (36 | ) | 31 | | 62 | (3 | ) | 59 | |||||||||||||||||||
Private Equity / Principal Investments |
1 | (0 | ) | (0 | ) | | 0 | (0 | ) | 0 | ||||||||||||||||||
Derivatives |
| | | | | | | |||||||||||||||||||||
Other |
194 | (66 | ) | 1,295 | | 1,422 | (1,195 | ) | 227 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 322 | $ | (130 | ) | $ | 1,326 | $ | | $ | 1,518 | $ | (1,198 | ) | $ | 320 | ||||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||
Europe |
$ | 2,561 | $ | (195 | ) | $ | 263 | $ | (41 | ) | $ | 2,587 | $ | (125 | ) | $ | 2,461 | |||||||||||
Asia |
1,500 | (363 | ) | 84 | 109 | 1,329 | (0 | ) | 1,329 | |||||||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 4,061 | $ | (559 | ) | $ | 346 | $ | 68 | $ | 3,916 | $ | (125 | ) | $ | 3,791 | ||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Professional Fees |
$ | (217 | ) | $ | 49 | $ | (1 | ) | $ | (1 | ) | $ | (169 | ) | $ | 13 | $ | (156 | ) | |||||||||
Compensation & Benefits |
(133 | ) | 43 | (19 | ) | (3 | ) | (112 | ) | 5 | (107 | ) | ||||||||||||||||
Incentive Fees |
(109 | ) | 5 | (8 | ) | | (111 | ) | 1 | (110 | ) | |||||||||||||||||
Other Administrative Expenses |
(50 | ) | 9 | (7 | ) | 4 | (45 | ) | 3 | (42 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Operating Expenses |
$ | (508 | ) | $ | 106 | $ | (35 | ) | $ | | $ | (437 | ) | $ | 22 | $ | (414 | ) | ||||||||||
Total Cash From Operations (CFO) |
$ | 3,875 | $ | (582 | ) | $ | 1,637 | $ | 68 | $ | 4,997 | $ | (1,301 | ) | $ | 3,697 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
4,186 | (409 | ) | $ | 240 | 294 | 4,311 | (496 | ) | 3,815 | ||||||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities |
(1,837 | ) | (43 | ) | 20 | | (1,860 | ) | 686 | (1,174 | ) | |||||||||||||||||
Investments in Affiliates |
1,340 | (175 | ) | 88 | | 1,253 | (3 | ) | 1,249 | |||||||||||||||||||
Total CFO + Intercompany Receipts |
$ | 7,563 | $ | (1,209 | ) | $ | 1,986 | $ | 361 | $ | 8,701 | $ | (1,114 | ) | $ | 7,587 | ||||||||||||
|
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|
|||||||||||||||
(a) | Transfers, Reclassifications and Adjustments primarily include (i) the reclassification of $43 million from Recoveries from Non-Controlled Affiliates to Pre-Petition Intercompany Receipts from Controlled Affiliates related to entities (SMF No. 1 Limited and StepStone Mortgage Funding Ltd) that were transferred to the Company, (ii) the reclassifications of $109 million from Other Debtors and Debtor-Controlled Entities related to claims against Non-Controlled Affiliates, primarily LBAH, that were assigned to LBHI, and (iii) the adjustment of $251 million in Pre-Petition Intercompany Receipts from Controlled Affiliates for recoveries on recently allowed claims against LBSF of $633 million and LBCS of $7 million related to the JPM Settlement. |
(b) | Cash collections in Other during the period April 1, 2016 through May 31, 2016 include $1.189 billion related to the JPM Settlement. |
Page 53
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Page 54
Quarterly Financial Report as of March 31, 2016 (Unaudited)
LCPI
The Company estimates that Total Adjusted Post-D9 CFE Cash From Operations, including Intercompany Receipts, at LCPI will be $1.1 billion, which reflects an increase in estimates of $54 million compared to estimates presented in the Post-D8 CFE.
($ in millions) | Post-D8 Cash Flow Estimates |
Less: Cash Activity 10/2/15-3/31/16 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments |
Post-D9 Cash Flow Estimates |
Less: Cash Activity 4/1/16-5/31/16 and D10 |
Adjusted Post-D9 CFE |
|||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||
Commercial Real Estate |
$ | 225 | $ | (21 | ) | $ | (10 | ) | $ | | $ | 194 | $ | (0 | ) | $ | 194 | |||||||||||
Loans (Corporate & Residential) |
74 | (7 | ) | 21 | | 88 | (52 | ) | 35 | |||||||||||||||||||
Private Equity /Principal Investments |
3 | (0 | ) | 0 | | 3 | | 3 | ||||||||||||||||||||
Derivatives |
| | | | | | | |||||||||||||||||||||
Other |
7 | 0 | (1 | ) | | 7 | (2 | ) | 5 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 309 | $ | (28 | ) | $ | 11 | $ | | $ | 292 | $ | (54 | ) | $ | 237 | ||||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||
Europe |
$ | 23 | $ | (0 | ) | $ | (2 | ) | $ | | $ | 21 | $ | (0 | ) | $ | 21 | |||||||||||
Asia |
0 | | | | 0 | | 0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 23 | $ | (0 | ) | $ | (2 | ) | $ | | $ | 22 | $ | (0 | ) | $ | 22 | |||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Professional Fees |
$ | (8 | ) | $ | 3 | $ | (1 | ) | $ | | $ | (6 | ) | $ | 1 | $ | (5 | ) | ||||||||||
Compensation & Benefits |
(10 | ) | 6 | (5 | ) | | (9 | ) | 0 | (9 | ) | |||||||||||||||||
Incentive Fees |
(28 | ) | 1 | 1 | | (25 | ) | 0 | (25 | ) | ||||||||||||||||||
Other Administrative Expenses |
(5 | ) | 1 | (2 | ) | | (5 | ) | 0 | (5 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Operating Expenses |
$ | (51 | ) | $ | 12 | $ | (6 | ) | $ | | $ | (46 | ) | $ | 2 | $ | (44 | ) | ||||||||||
Total Cash From Operations (CFO) |
$ | 281 | $ | (16 | ) | $ | 3 | $ | | $ | 268 | $ | (53 | ) | $ | 215 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
688 | (59 | ) | $ | 79 | (2 | ) | 706 | (5 | ) | 702 | |||||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities |
(180 | ) | 71 | (36 | ) | | (145 | ) | | (145 | ) | |||||||||||||||||
Investments in Affiliates |
422 | (94 | ) | 8 | | 336 | (12 | ) | 324 | |||||||||||||||||||
Total CFO + Intercompany Receipts |
$ | 1,211 | $ | (98 | ) | $ | 54 | $ | (2 | ) | $ | 1,165 | $ | (69 | ) | $ | 1,096 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Petition Intercompany Receipts from Controlled Entities
Pre-Petition intercompany receipts include recoveries from distributions on Allowed Claims against Debtors (per the Plan), pre-petition intercompany receivables from Debtor-Controlled Entities, and Post-Petition Interest on Allowed Claims against LBCC. The Company estimates that LCPI will receive approximately $0.7 billion, primarily from Lehman ALI Inc.
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities
Estimated net Post-Petition intercompany payables at LCPI primarily includes (i) a loan of $140 million from LBFP, (ii) payments to LCPI Properties Inc., and (iii) payments to LBHI related to the allocation of estimated taxes in accordance with the Debtor Allocation Agreement, partially offset by receivables from LB 1 Group for financial inventory encumbered to LCPI. |
Investments in Affiliates
Investments in Affiliates include recoveries from wholly-owned subsidiaries in cases in which the subsidiarys net recoverable assets exceed or are expected to exceed its liabilities. The Company estimates that LCPI will receive approximately $0.3 billion, primarily from LCPI Properties Inc. |
Page 55
Quarterly Financial Report as of March 31, 2016 (Unaudited)
LBSF
The Company estimates that Total Adjusted Post-D9 CFE Cash From Operations, including Intercompany Receipts, at LBSF will be $0.5 billion, which reflects an increase in estimates of $339 million compared to estimates presented in the Post-D8 CFE.
($ in millions) | Post-D8 Cash Flow Estimates |
Less: Cash Activity 10/2/15-3/31/16 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments |
Post-D9 Cash Flow Estimates |
Less: Cash Activity 4/1/16-5/31/16 and D10 (a) |
Adjusted Post-D9 CFE |
|||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||
Loans (Corporate & Residential) |
| | | | | | | |||||||||||||||||||||
Private Equity / Principal Investments |
| | | | | | | |||||||||||||||||||||
Derivatives |
154 | (92 | ) | 305 | (4 | ) | 363 | (265 | ) | 98 | ||||||||||||||||||
Other |
27 | (9 | ) | 9 | 4 | 32 | (2 | ) | 29 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 181 | $ | (100 | ) | $ | 314 | $ | | $ | 395 | $ | (267 | ) | $ | 127 | ||||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||
Europe |
$ | 44 | $ | (8 | ) | $ | 27 | $ | | $ | 63 | $ | (1 | ) | $ | 62 | ||||||||||||
Asia |
1 | (0 | ) | (0 | ) | | 1 | | 1 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 45 | $ | (8 | ) | $ | 27 | $ | | $ | 64 | $ | (1 | ) | $ | 63 | ||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Professional Fees |
$ | (96 | ) | $ | 14 | $ | 6 | $ | | $ | (76 | ) | $ | 6 | $ | (70 | ) | |||||||||||
Compensation & Benefits |
(51 | ) | 15 | (0 | ) | | (36 | ) | 2 | (34 | ) | |||||||||||||||||
Incentive Fees |
(19 | ) | 1 | (3 | ) | | (21 | ) | 1 | (20 | ) | |||||||||||||||||
Other Administrative Expenses |
(23 | ) | 4 | 4 | | (14 | ) | 1 | (13 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total-Operating Expenses |
$ | (188 | ) | $ | 34 | $ | 7 | $ | | $ | (147 | ) | $ | 11 | $ | (137 | ) | |||||||||||
Total Cash From Operations (CFO) |
$ | 38 | $ | (74 | ) | $ | 348 | $ | | $ | 311 | $ | (257 | ) | $ | 54 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
122 | (7 | ) | $ | 10 | | 126 | (6 | ) | 119 | ||||||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities |
914 | 34 | (19 | ) | | 929 | (561 | ) | 368 | |||||||||||||||||||
Investments in Affiliates |
2 | | (0 | ) | | 1 | | 1 | ||||||||||||||||||||
Total CFO + Intercompany Receipts |
$ | 1,076 | $ | (48 | ) | $ | 339 | $ | | $ | 1,368 | $ | (825 | ) | $ | 543 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Cash collections in Derivatives include $201 million related to the JPM Settlement. |
Page 56
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Other Debtors
($ in millions) | LOTC | LBCC | LBCS | LBFP | Merit | LBDP | Other Debtors |
Total Other Debtors |
||||||||||||||||||||||||
POST-D9 CASH FLOW ESTIMATES |
||||||||||||||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||||||
Commercial Real Estate |
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Loans (Corporate & Residential) |
| | | | | | | | ||||||||||||||||||||||||
Private Equity / Principal Investments |
| | | | | | | | ||||||||||||||||||||||||
Derivatives |
| | 30 | | | | | 30 | ||||||||||||||||||||||||
Other |
1 | 0 | 0 | | | | | 1 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Sub-Total - Net Receipts |
$ | 1 | $ | 0 | $ | 30 | $ | | $ | | $ | | $ | | $ | 31 | ||||||||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||||||
Europe |
$ | | $ | 9 | $ | 53 | $ | | $ | 23 | $ | | $ | | $ | 85 | ||||||||||||||||
Asia |
| 21 | 0 | | | | | 21 | ||||||||||||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | | $ | 31 | $ | 53 | $ | | $ | 23 | $ | | $ | | $ | 107 | ||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||||||
Professional Fees |
$ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (0 | ) | $ | (0 | ) | $ | (0 | ) | $ | (0 | ) | $ | (4 | ) | ||||||||
Compensation & Benefits |
(1 | ) | (1 | ) | (0 | ) | (1 | ) | (0 | ) | (0 | ) | (1 | ) | (5 | ) | ||||||||||||||||
Incentive Fees |
(1 | ) | (2 | ) | (9 | ) | (1 | ) | | (0 | ) | (1 | ) | (14 | ) | |||||||||||||||||
Other Administrative Expenses |
(1 | ) | (1 | ) | (0 | ) | (1 | ) | (0 | ) | (0 | ) | (1 | ) | (4 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Sub-Total - Operating Expenses |
$ | (4 | ) | $ | (5 | ) | $ | (11 | ) | $ | (2 | ) | $ | (0 | ) | $ | (1 | ) | $ | (3 | ) | $ | (27 | ) | ||||||||
Total Cash From Operations (CFO) |
$ | (4 | ) | $ | 26 | $ | 73 | $ | (2 | ) | $ | 22 | $ | (1 | ) | $ | (3 | ) | $ | 111 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Pre-Petition Intercompany Receipts from Controlled Entities |
$ | 0 | $ | 1 | $ | 27 | $ | | $ | 2 | $ | 0 | 97 | 126 | ||||||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities |
514 | 250 | 7 | 144 | (0 | ) | 19 | (9 | ) | 925 | ||||||||||||||||||||||
Investments in Affiliates |
| | | | | | (0 | ) | (0 | ) | ||||||||||||||||||||||
Total Post-D9 CFO + Intercompany Receipts |
$ | 510 | $ | 277 | $ | 106 | $ | 142 | $ | 24 | $ | 18 | $ | 85 | $ | 1,162 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash Activity, 10/2/15-3/31/16 |
$ | 19 | $ | (22 | ) | $ | 3 | $ | 72 | $ | 50 | $ | (20 | ) | $ | (2 | ) | $ | 98 | |||||||||||||
Transfers, Reclassifications, Adjustments |
| 24 | (11 | ) | | | | 8 | 20 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Post-D9 CFE, including Prior Period Activity |
$ | 529 | $ | 279 | $ | 98 | $ | 214 | $ | 74 | $ | (3 | ) | $ | 91 | $ | 1,281 | |||||||||||||||
Total Post-D8 CFE |
529 | 277 | 63 | 211 | 47 | (4 | ) | 82 | 1,206 | |||||||||||||||||||||||
Variance, Post-D9 CFE (including Prior Period) vs. Post-D8 CFE |
(1 | ) | 2 | 35 | 3 | 27 | 1 | 8 | 75 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total Post-D9 CFO + Intercompany Receipts |
$ | 510 | $ | 277 | $ | 106 | $ | 142 | $ | 24 | $ | 18 | $ | 85 | $ | 1,162 | ||||||||||||||||
Less: Cash Activity 4/1/16-5/31/16 and D10 (a) |
0 | (125 | ) | (36 | ) | (0 | ) | (0 | ) | (0 | ) | (2 | ) | (164 | ) | |||||||||||||||||
Adjusted Post-D9 CFE |
$ | 510 | $ | 152 | $ | 71 | $ | 142 | $ | 24 | $ | 18 | $ | 83 | $ | 999 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(a) | Cash collections at LBCS include $30 million related to the JPM Settlement. |
Page 57
Quarterly Financial Report as of March 31, 2016 (Unaudited)
Debtor-Controlled Entities
($ in millions) | Post-D8 Cash Flow Estimates |
Less: Cash Activity 10/2/15-3/31/16 |
Recovery Value Change |
Transfers, Reclassifications, Adjustments |
Post-D9 Cash Flow Estimates |
Less: Cash Activity 4/1/16-5/31/16 and D10 |
Adjusted Post-D9 CFE |
|||||||||||||||||||||
Net Receipts |
||||||||||||||||||||||||||||
Commercial Real Estate |
$ | 404 | $ | (172 | ) | $ | 37 | $ | | $ | 269 | $ | (22 | ) | $ | 246 | ||||||||||||
Loans (Corporate & Residential) |
43 | (2 | ) | (9 | ) | | 31 | (1 | ) | 30 | ||||||||||||||||||
Private Equity / Principal Investments |
1,388 | (179 | ) | (110 | ) | | 1,099 | (88 | ) | 1,010 | ||||||||||||||||||
Derivatives |
1 | (7 | ) | 7 | | 1 | | 1 | ||||||||||||||||||||
Other |
16 | (3 | ) | (4 | ) | 43 | 52 | (0 | ) | 52 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Net Receipts |
$ | 1,851 | $ | (363 | ) | $ | (80 | ) | $ | 43 | $ | 1,451 | $ | (112 | ) | $ | 1,340 | |||||||||||
Recoveries From Non-Controlled Affiliates |
||||||||||||||||||||||||||||
Europe |
$ | 1,560 | $ | (6 | ) | $ | (5 | ) | $ | (1 | ) | $ | 1,548 | $ | | $ | 1,548 | |||||||||||
Asia |
104 | (2 | ) | (10 | ) | (85 | ) | 8 | | 8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Recoveries From Non-Controlled Affiliates |
$ | 1,664 | $ | (7 | ) | $ | (15 | ) | $ | (86 | ) | $ | 1,556 | $ | | $ | 1,556 | |||||||||||
Operating Expenses |
||||||||||||||||||||||||||||
Professional Fees |
$ | (6 | ) | $ | 3 | $ | (0 | ) | $ | | $ | (3 | ) | $ | 1 | $ | (2 | ) | ||||||||||
Compensation & Benefits |
(22 | ) | 8 | (3 | ) | | (17 | ) | 0 | (16 | ) | |||||||||||||||||
Incentive Fees |
| 1 | (1 | ) | | | 0 | 0 | ||||||||||||||||||||
Other Administrative Expenses |
(10 | ) | 2 | 6 | | (2 | ) | 0 | (2 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Sub-Total - Operating Expenses |
$ | (37 | ) | $ | 14 | $ | 2 | $ | | $ | (22 | ) | $ | 1 | $ | (20 | ) | |||||||||||
Total Cash From Operations (CFO) |
$ | 3,478 | $ | (357 | ) | $ | (93 | ) | $ | (43 | ) | $ | 2,985 | $ | (110 | ) | $ | 2,875 | ||||||||||
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Pre-Petition Intercompany Receipts from Controlled Entities |
434 | (70 | ) | $ | 168 | (11 | ) | 521 | (102 | ) | 419 | |||||||||||||||||
Net Post-Petition Intercompany Receipts from / (Payables to) Controlled Entities |
144 | (29 | ) | 35 | | 151 | | 151 | ||||||||||||||||||||
Investments in Affiliates |
466 | | 19 | | 485 | | 485 | |||||||||||||||||||||
Total CFO + Intercompany Receipts |
$ | 4,522 | $ | (455 | ) | $ | 129 | $ | (54 | ) | $ | 4,142 | $ | (213 | ) | $ | 3,930 | |||||||||||
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