Update – Waterfall Application – Subordinated debt and other Affiliate relationship issues – Written opening submissions and supplemental written opening submissions – 11 November 2013

On 18 February 2013, Lehman Brothers International (Europe) (in administration) (“LBIE”) and other UK affiliates announced that they had issued a joint application to seek a determination on various issues concerning their shareholding and other relationships (the “Waterfall Application”).

The written opening submissions of LBIE were filed on 24 October 2013 and published within the 6 November 2013 update.

The written opening submissions of the other parties were also filed in the Waterfall Application on 24 October 2013. Copies of these written opening submissions can be found by following the links below:

• Lehman Brothers Limited (in administration) (“LBL”)
• LB Holdings Intermediate 2 Limited (in administration) (“LBHI2”)
• Lehman Brothers Holdings, Inc (“LBHI”)
• Lydian Overseas Partners Master Fund Limited (“Lydian”)

All parties, with the exception of Lydian, filed supplemental written submissions on 4 November 2013. Copies of these supplemental written submissions can be found by following the links below:

• LBIE
• LBL
• LBHI2
• LBHI

The hearing of the Waterfall Application commences today (Monday 11 November 2013) with a reading day for the judge before submissions commence on Tuesday 12 November 2013.

The parties have engaged a transcriber to produce daily transcripts of the hearing. The LBIE administrators intend to post each daily transcript on the LBIE website the following business day. Please note that:

• all such transcripts will be published in the form received from the transcriber (i.e. prior to review by any party to the Waterfall Application and without corrections);
• the parties reserve the right to post amended versions of the transcripts should they consider it necessary, but accept no responsibility for doing so; and
• the LBIE administrators will be posting such transcripts solely for the convenience of interested third parties and neither they nor any other party to the Waterfall Application makes any representation as to the accuracy of such transcripts nor accepts any responsibility for any inaccuracies contained within them.

Should you have any queries regarding this update, please contact LBIE’s Communications and Counterparty Management team at generalqueries@lbia-eu.com.