BANKRUPTCY REPORT Bankruptcy report number 16 of the trustee of Lehman Brothers Securities N.V. 11 February 2015 Company name : Lehman Brothers Securities N.V. (″LBS″) Bankruptcy reference : E.J.F. 2/2009 Bankruptcy date : 30 January 2009 (the ″Bankruptcy Date″) Trustee : Mr. M.R.B. Gorsira (the ″Trustee″) Supervisory judge : Mr. A.J. Beukenhorst (the ″Supervisory Judge″) Activities Company : The objective of LBS is the structuring and issuing of derivative products linked to equity securities with the purpose to obtain a return on investment. Turnover data : Operating income according to the audited annual accounts 2007 (as of 30 November 2007): USD 21,895 Reporting period : 3 October 2014 up to and including 9 February 2015 Hours spent in period under review : 702,90 hours Total hours spent to date : 19.263,70 hours Summary of key issues - In this sixteenth bankruptcy report the Trustee provides an update regarding the progress of the settlement of the bankruptcy of LBS over the last 4 months; - On 6 November 2014 the Trustee made the fourth interim distribution to the creditors (§3); and - On 16 January 2015 the Trustee published the Solicitation Memorandum regarding the Wind Down process of the LBS bankruptcy (§4). 2/5 1. General 1.1 This is the sixteenth bankruptcy report of the Trustee. The information provided in this report is still subject to further investigation. Please be advised that information may have to be substantially amended following such further investigation. 1.2 With regard to the progress of the bankruptcy, the Trustee will communicate with the creditors via electronic mailings (through the electronic communication systems of the clearing systems) and via the website: www.ekvandoorne.com/bankruptcy-lehman-brothers- securities/38-general-information. Please note that the information and documents published on the website may (at any time) be subject to changes. 1.3 In this sixteenth bankruptcy report the Trustee provides an update regarding the progress of the settlement of the bankruptcy of LBS over the last 4 months. 2. Lehman Brothers Securities N.V. 2.1 General LBS was incorporated on 31 October 2003 and was a wholly-owned subsidiary of Lehman Brothers Asia Holdings Limited, seated in Hong Kong, which in turn is a wholly-owned subsidiary of LBHI. LBHI is incorporated in Delaware in the United States and is the holding company of the worldwide operating Lehman Brothers group of companies. LBS had its corporate seat at E-Commerce Park, Vredenberg in Curacao. Mr. Jonathan Josef Knapp was listed in the Commercial Register as the Managing Director of LBS (the ″Managing Director″). The Managing Director resigned as per 28 August 2013. The correspondence address of LBS is: Julianaplein 22, Willemstad in Curacao. 3. Fourth Interim Distribution On 14 October 2014 the Trustee filed the list of fourth interim distributions (vierde tussentijdse uitdelingslijst), that was approved by the Supervisory Judge, at the Court House. This list was available for public inspection for 10 days. With the record date being 30 October 2014, the Trustee made the fourth cash distribution of USD 150,033,352.60 to the creditors on 6 November 2014. The distribution rate was 3.89% per admitted unsecured claim. Nothing in this report should be deemed or construed as an admission of liability or claims, or as a waiver of any rights, claims or defenses. 3/5 3.1 Final distribution The final cash distributions are scheduled for May 2015. See also the next paragraph. 4. Wind-Down of the LBS bankruptcy On 6 November 2014 the Trustee issued a press release1 in which he announced that he is considering winding down the LBS estate and making a final distribution to creditors in the first quarter of 2015. The press release was issued on business wire.com and by e-mail to all known creditors and market participants. In November and December 2014 the Trustee and his advisors started preparing the WindDown process. In that respect they had various meetings in New York, London and Zurich with creditors (both Direct Participants and UBO’s), market participants and the clearing systems about the various aspects of the Wind-Down process. The Trustee and his advisors had also various meetings and conference calls with the LBS creditors committee. The LBS creditors committee supports the Wind-Down of the LBS bankruptcy and the Supervisory Judge approved the Wind-Down process as well as the engagement of Deutsche Bank, London Branch as the Principal Agent and Banc of America Credit Products, Inc. as the sales agent. Deutsche Bank assists the Trustee with the solicitations of the instructions from the note holders, the reconciliation thereof as well as with the final cash distributions. Banc of America assists the Trustee with monetizing the claims via a public auction. On 16 January 2015 the Trustee published the Solicitation Memorandum. The Solicitation Memorandum was sent to all known creditors and market participants and circulated by the clearing systems to their account holders, holding LBS securities. The Solicitation Memorandum and the executive summaries in English, French, German and Italian can be found on the website2. 1 2 www.businesswire.com/news/home/20141106006329/en/LBS-Trustee-Considers-Wind-Bankruptcy-Estate www.ekvandoorne.com/bankruptcy-lehman-brothers-securities/73-wind-down Nothing in this report should be deemed or construed as an admission of liability or claims, or as a waiver of any rights, claims or defenses. 4/5 The Wind Down process in summary The Trustee seeks to wind-down the LBS Estate. The LBS estate has four remaining assets. The largest is LBS’s allowed intercompany claim against LBHI (the “LBHI Receivable”). The remaining three assets are LBS’s allowed intercompany claims against LBCC, LBIE and LBSF (collectively, the LBCC, LBIE and LBSF Receivables). The Trustee intends to sell the LBCC, LBIE and LBSF Receivables and remit the net proceeds of such sale to all holders of admitted claims against LBS. In addition, the LBS Trustee is giving holders of admitted claims against LBS the opportunity to receive an In-Kind Distribution of the LBHI Receivable. The In-Kind Distribution will be a pro rata portion of the LBHI Receivable in the form of a direct claim against LBHI. The Solicitation Memorandum explains the procedure for creditors to elect to receive an In-Kind Distribution and the consequences thereof. If a creditor elects to receive an In-Kind Distribution, he will be eligible to receive additional distributions directly from LBHI, but will be required to submit additional forms to Epiq (the claims agent for LBHI) in order to receive additional distributions. The Trustee will then sell the remaining portion of the LBHI Receivable and remit the net proceeds of such sale to cash creditors (creditors who do not properly elect to receive the In-Kind Distribution). Should a creditor have any further questions regarding the Solicitation Memorandum, he can contact: Deutsche Bank AG, London Branch Winchester House 1 Great Winchester Street London EC2N 2DB United Kingdom Attn: ICSS-Debt & Agency Services Re: LBS Tel: +44 207 547 5000 Fax: +44 203 320 1747 Email: [email protected] Nothing in this report should be deemed or construed as an admission of liability or claims, or as a waiver of any rights, claims or defenses. 5/5 5. Miscellaneous This sixteenth bankruptcy report (as well as every subsequent bankruptcy report) will be available on the website. The bankruptcy reports are also available for inspection at the Court of First Instance in Curacao. 6. Plan of action / Time line The Trustee refers to the Solicitation Memorandum for a more detailed time line with regard to the Wind-Down. **** Nothing in this report should be deemed or construed as an admission of liability or claims, or as a waiver of any rights, claims or defenses.
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