Update – Waterfall II Application (the “Application”) – Adjourned Positions – 7 April 2015

At the Case Management Conference in the Application on 9 March 2015, the LBIE Administrators informed the Court that they had concluded that certain issues in the Application do not have material significance in the LBIE Administration such that they do not require determination and ought to be adjourned. The LBIE Administrators sought an order to that effect, subject to creditors being informed of the position through this website and being given the opportunity to object to the LBIE Administrators’ proposed course. The issues which the LBIE Administrators propose be adjourned are:

• Issues 31 and 32, which concern whether a Currency Conversion Claim can arise in respect of GMSLA, GMRA or other master agreements in which provisions stating that the termination and close-out netting provisions which would result in a payment obligation in a non-sterling payment by one party to the other do not apply other than upon the default of LBIE’s counterparty; and
• Issue 33, which concerns whether a Currency Conversion Claim can be established by a creditor where the creditor’s right is derived from a transfer by LBIE’s original counterparty (or an assignee of the original counterparty) which only transferred the provable debt, the right to receive a dividend on the provable debt, or the Agreed Claim Amount and, if not, whether the original counterparty or the assignee is capable of having a valid Currency Conversion Claim.

Any creditor which objects to the adjournment of the above issues should contact the LBIE Administrators at unsecuredcreditors@lbia-eu.com by no later than Friday 24 April 2015, stating the basis for its objection.

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