Creditor Update – planning for the second interim distribution to unsecured creditors – 29/05/2013

The creditor update on 08 May 2013 explained that the Administrators anticipated the second interim distribution to unsecured creditors would be paid on, or around, 28 June 2013.

In order to prepare for this distribution, creditors are reminded of the following:

1. Deadline for claims agreement

To be eligible to participate in the second interim distribution on this payment date, a creditor must have its claim agreed via an executed Claims Determination Deed (“CDD”) (or similar agreement) by Friday 31 May 2013.

Where a CDD cannot be executed by 31 May 2013 due solely to a requirement for the LBI settlement agreement to become unconditional and therefore the Common Terms Effective Date to occur (such as for claims which require certainty as to the settlement profile of LBI pending trades), then provided:

• a creditor has returned to LBIE a signed copy of the CDD by 31 May 2013; and
• the LBI settlement becomes unconditional during the week ending 7 June 2013 (to enable the CDD to be then countersigned by LBIE);

any such claims will be eligible to participate in payment of the second interim distribution on, or around, 28 June 2013.

2. Transfer deadline

In order to give LBIE sufficient time to arrange the necessary dividend payments, unsecured creditors who wish to transfer their claims in accordance with the transfer provisions of an executed CDD must send a Transfer Notice executed by both the Transferor and Transferee (each, as defined in the CDD) to be received by LBIE no later than 31 May 2013.

Transfer Notices should be sent to claimsdeed@lbia-eu.com and by post to Lehman Brothers International (Europe) (in administration), Level 23, 25 Canada Square, E14 5LQ, marked for the attention of: In House Legal Team.

Unsecured creditors and potential Transferees should note that any Transfer Notices received by LBIE after 31 May 2013 will not be countersigned by LBIE in time for the second interim distribution, and LBIE will proceed to pay the second interim distribution to the unsecured creditor of record according to LBIE’s records as at 31 May 2013.

Any Transfer Notices received after 31 May 2013 will be processed following payment of the second interim distribution. Until LBIE countersigns the Transfer Notice, LBIE will continue to make any payments to, and otherwise deal with, the unsecured creditor of record.

3. Change of name notification

If the name of a creditor’s legal entity has changed, creditors are reminded (if they have yet to do so) of the need to urgently notify unsecuredcreditors@lbia-eu.com, providing details of the name change together with supporting legal documentation.

Failure to do so by 31 May 2013 could result in a delay in paying such creditors their second interim distribution.

4. Confirmation of legal ownership of claim and SSIs

Unsecured creditors with an admitted claim are reminded that to be eligible to participate in the second interim distribution that they will be required to confirm that they are still the legal owner of the admitted claim and confirm their GBP Standard Settlement Instructions (“SSIs”) via LBIE’s Client Information Portal. Creditors with admitted claims will be contacted in the week commencing 10 June 2013 with regard to this process.

In the meantime, creditors should ensure that they have valid up to date log on details for LBIE’s Client Information Portal. For any queries relating to Portal access, please contact the Communications and Counterparty Management team at logons@lbia-eu.com.