lehman brothers holdings inc.- section 341 meeting, dated july 8, 2009

8/14/2019 Lehman Brothers Holdings Inc.- Section 341 Meeting, dated July 8, 2009.

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Fil ing Date: 7/8/2009 Form Type: 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSIONWashington, 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 8, 2009

Lehman Brothers Holdings Inc.(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-9466 13-3216325

(Commission File Number) (IRS Employer Identification No.)

1271 Avenue of the Americas

New York, New York 10020

(Address of principal (Zip Code)

executive offices)

Registrants telephone number, including area code:

(212) 526-7000

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 8.01. Other Events .

On July 8, 2009, representatives of Lehman Brothers Holdings Inc. (the Registrant) participated in a meeting of the Registrants creditors, pursuant to Section 341 of Chapter 11 of Title 11

of the United States Code, where they presented an updated status report of the Registrants bankruptcy and liquidation proceedings. A presentation, attached hereto as Exhibit 99.1, was

provided at the meeting as background information.

Item 9.01. Financial Statements and Exhibits .

(d) Exhibits

The following Exhibit is filed as part of this Report.

Exhibit 99.1 Lehman Brothers Holdings Inc.- Section 341 Meeting, dated July 8, 2009.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

LEHMAN BROTHERS HOLDINGS INC.

Date: July 8, 2009 By: /s/ William Fox

Name: William Fox

Title: Chief Financial Officer and Executive Vice President

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EXHIBIT INDEX

Exhibit 99.1 Lehman Brothers Holdings Inc.- Section 341 Meeting, dated July 8, 2009.

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Exhibit 99.1

Lehman Brothers Holdings Inc. 341MeetingJuly 8, 2009

1Theinformationand dataincludedin this Reportarederived fromsources availabletoLehman Brothers Holdings Inc. and its othersubsidiaries thathavefiledproceedings underChapter11 oftheBankruptcyCode(collectively, the"Debtors"). TheDebtors haveprepared this presentationbased on theinformation availabletothematthis time, butnotethatsuch information is incompleteandmaybemateriallydeficientincertainrespects. Informationreflected inthefollowingAssetTeamreports areas of varying dates based on each Teams assessmentofcertainmetrics. Additionally, pleaseseetheDebtors Basis ofPresentation intheMonthly OperatingReports and theGlobalFootnotes in theDebtors Schedules ofAssets andLiabilities whichareincorporatedbyreferenceas ifsetforth atlengthherein. This reportwasprepared by theDebtors forpurposes ofpresentingtheCreditors withastatus oftheEstateas of thedateofthepresentationandis notmeanttoberelieduponbyinvestors orothers as acompletedescriptionoftheEstate, its business, condition (financialorotherwise), results ofoperations, prospects, assets orliabilities. Theinformationin this presentationwillonly beupdated, including anycorrections, inconnectionwith futurepresentations to theCreditors on thestateoftheDebtors' estate.TheDebtors reserveallrights torevisethis report. Allamounts are unaudited andsubjectto revision.



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CurrentSituationOverallSteady progress onassetmanagement, claims management, financialreporting, and litigation fronts Liquidity Continues tobuild butpermittedinvestmentoptions arepoorReporting December31, 2008 BalanceSheets should beavailableinAugust2009Catchuponfinancials continues andITmigrationfromBarclays is onschedule2ExecutiveSummary



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CurrentSituation(continued)Claims ManagementBardateofSeptember22, 2009 Sorting throughmyriadofguarantees and intercompanyclaims LitigationSignificantactivityunderway withlitigationinprogress (BankofAmericaandBarclays)andlitigationbeing developedforotherinstitutions Preference/FraudulentConveyanceworkstreambeing developedExecutiveSummary(continued)3



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4ExecutiveSummary (continued)PersonnelFTE's DepartmentLehman A&M (a)TotalFinance/Treasury/Tax105 30 135 IT/WindDown 15 3247Legal/CMS /Data/Forensic30 3161Management(Admin /HR)14721164 100264 AssetTeams Derivatives 2058 213PrincipalInvestments /PrivateEquity9110 101RealEstate(b)57 966CorporateLoans 33740International42(c)3577Sub-TotalAssetTeams 428 69 497LBB /ALS 1,75961,765LBCB 20 -20LB Trusts 35 -35TotalHeadcount2,4061752,581Notes (a)FTE's based on Aprilactivity (b)Trimontprovides approximately 200peoplein supportofRealEstateTeam(c)42 Lehmanpersonnelincludes 33 inEuropeand9 inAsia



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5ExecutiveSummary (continued)KeyA&M Responsibilities MaximizeRecoveryValueofAssets 5AssetTeams in placeTasks aredefined/plans beingexecutedMitigatePotentialLiability /ReconcileClaims Majorpendingopen issues includeDerivativeClaims, UnfundedCommitments, ParentGuaranteed Debt, andClearingBankClaimTreatmentMeettheNeeds oftheCourt/US Trustee/UnsecuredCreditors CommitteeTimelyreportingandtransparencyCosteffectiveadministrationofthecaseTimelycompletion ofan exit



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AssetReports BankPlatforms Nosurprises on bankassetmanagementfront, assetvalues arestabilizingFDIC seems to bechangingtherules ofthegameandOTS hasbeendissolved, no new CD issuance facing issueofmaturity mismatchbetweenliabilities andassets BankBookUnfundedcommitmentobligations continueto beeliminatedImprovedmarketvalueontheloanportfolio6ExecutiveSummary(continued)

AssetReports (continued)PrincipalInvestments /PrivateEquity Focus on stabilization and/or spin-outoffundmanagementcompanies forREMezzanine, REEquity,and Euro MezzanineRealEstateAssets CanyonRanch (Miami), so farso good, strongmarketresponseShiftingfromlenderto assetmanager/ownerstatus innumeroussituations Derivatives Closeto$6billioncollectionmilestoneImplementingahedging/assigning strategyto lock-upvalueImplementingalitigationstrategy ExecutiveSummary(continued)7



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AssetReports (continued)InternationalLavenderportfoliosaleinJapan exceeded expectations Preliminarysettlementdiscussions withBankhaus receiverIntercompanyStillhavelimitedunderstanding ofactivities atLBILBI /LBIEprovideminimumtransparencyWorkingwellwithKPMG Receiverin AsiaInternationalprotocolsignedup (July 17, 2009conference)ExecutiveSummary (continued)8



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Challenges LBINotclearwhatthey havedoneoncollections, fails or preferenceitems, completelackoftransparency, as thelargestcreditorweremainin thedarkLBIECoulduseimproved PwC cooperation on various items, veryconservativerisk adverseadministrativeapproachExecutiveSummary (continued)9


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CurrentCashand Short-TermInvestmentPosition Americas (a)10Financial CashPosition($ inmillions)FilingSegregated /DateDateGeneralIdentifiedTotalFiled Balance(c)Funds Funds (d)Funds (e) DebtorEntities (20Entities)LehmanBrothers Holdings Inc. 9/15/081,148.2$2,664.2$ 274.5$ 2,938.7 $LehmanCommercialPaper10/5/08 460.7 1,131.6 1,152.1 2,283.7 LB SpecialFinancing 10/3/08 7.13,195.1 380.13,575.2LB Commodity Services 10/3/0830.2 926.4-926.4LB FinancialProducts 10/5/086.6 437.5 -437.5 LB CommercialCorporation10/5/088.0 409.71.5411.2 LB DerivativeProducts 10/5/08296.9 380.9 3.2384.1LBOTC Derivatives 10/3/08131.8 164.3-164.3 OtherDebtorEntities (12entities)Various 4.0 4.3-4.32,093.49,314.01,811.411,125.4Non-DebtorEntities 1,450.11,017.076.91,093.9TotalCashand Short-TermInvestments Balance3,543.5 $10,331.0 $1,888.3$ 12,219.3$ Notes (a)Represents cashmanagedandreconciledbyLehman US operations. Foreigncurrency cash is reflected inUSD equivalents. (b)Includes $107.3million Citibank pre-petition balancewhichhas been frozenand is notreadilyavailableto thedebtor. (c)LBHIcashbalanceonfilingdatehas increased$235.2million sincethelast341presentationtoreflectopeningcashbalanceon9/15.Previous balancebasedon closing cash balanceon9/15. (d) Amounts segregatedpercourtorder, stipulationordebtors' preliminary estimateofthird partyfunds ($1.5billionrelatedto receipts onpledgedassets and $350.4millionrelated tomisdirectedwires). (e)Does notinclude$484.0millionsetoffby JP Morgan andapplied toallegedderivates claimand$500.0 million which was seizedpost-filingbyBankofAmerica. As of06/30/09(b)


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Cash Flow Activities LBHI(US)(a)11FinancialCashFlow ($ inmillions)FilingDatethru 06/30/09Comments Receipts AssetSales 1,831.5 $$1.3B saletoBarclays, $0.3B saleofR3Capitalstake, and $0.2B saleofEagleEnergy Receipts fromSubsidiaries 736.7RE$411.1M, PI/PE$102.8M, XO Jetnotepayoff$59.0M,Derivatives $54.9M, LB India$45.0M, LoanBook$40.0M, Aviation$9.2M andOther$14.7M Investment/OtherSettlements 190.4 Diversified ArbitrageFund$97.8M, OspraieFund $16.3M, LB GlobalBond Fund $6.8M, andOther$69.5M OtherReceipts /Income55.2YumaHospitalLoan$15.6M, InterestIncome$6.5M,Tax Refunds $3.9M and Other$29.2M 2,813.8Disbursements -OperatingCompensationand Benefits, Net(209.6)Rent/Leases, Net(68.5)Transition ServiceAgreements, Net(62.2)Tax Advisory /Payments (4.8)LoanBookDisbursements (32.7)DerivativeSettlements (76.8)Represents transferto LBSF for post-petitionderivativesettlements receivedinto LBHIinerrorRealEstateCapitalCalls (328.2)Fortress $152.8M, Prologis $25.8M, otherCommercialRE$132.3M, andResidentialRE$17.3M PrivateEquityCapitalCalls (215.5)CapitalCalls:WiltonRE$121.6M, SkyPower$56.8M, OneWilliamStreetCapital$36.5M, and Other$0.6M CapitalContributions to Subsidiaries (280.0)CapitalInjectiontoLBCB $250M and LBB $30M Advances to Subsidiaries, Net(400.7)CapitalCalls:PE$280.7M, RE$101.5M,Aviation $12.2M, andOtherAdvances of$6.3M OtherOperatingExpenses (70.9)Insurance$20.0M, OrdinaryCourseProfessionals $7.9M, andOther$43.0M (1,749.7)Operating CashFlow 1,064.1Disbursements -OtherProfessionalFees (134.7)DIP Fees /Interest(13.6)(148.3)NetCashFlow (b)915.8Cash BalanceBeg. CashandSTInvestments 1,148.2NetCashFlow 915.8 Seized byBoA (500.0)Legacy NetCash Flow (280.3)Reflects $500.0M transfertoLBItocoverFX fundingobligations,offsetbyloanbookreceipts NetEuropeanActivity1,354.6Includes repatriationoffunds andreceipts intopost-petitionaccounts fromLBHIUK branchExpenseReimbursement300.4Represents reimbursements to LBHIofexpenses (fromSeptember2008 throughMay2009)on behalfofvarious debtorandnon-debtorentitiesEnd. Cashand STInvestments 2,938.7 $ Notes (a)Certain items previouslyreportedhavebeen reclassifiedin this presentation. (b)Based on activity inpost-petitionaccounts.

12 AssetTeamReports Bank Platforms LBCB /Woodlands Situation(Utah)SignificantQ1capitalimprovementachievedviaCourtapproved$200.0 million cashinjection andelimination ofapproximately$3.0billionofunfunded loancommitments March 31, 2009CallReportindicated thatTotalRiskBased Capital(RBC)improvedto 9.85%, justshy ofwellcapitalizedIndiscussions withSIPA Trusteeregardingcustomerclaimallowanceof$534.0 million Munibond claim;unabletopredictactualrecovery atthis timeRisk Year-EndaudittargetcompletiondateJuly 20, 2009, goingconcernissues remain, auditresults mayrequireDecember31,2008and March 31, 2009FDIC CallReportrestatements ($ inmillions)9/30/0812/31/08 3/31/09 Assets 6,405.0$ 5,423.8 $4,840.6$Liabilities 5,397.04,990.84,268.3Equity 1,008.0 433.0572.3RBC Ratio10.8%5.4%9.9%(a)Note(a)This totalRBC ratio is preliminaryand subjecttothepending year-endaudit.


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13 AssetTeamReports (continued)BankPlatforms (continued)AuroraBankSituation(DelawareThrift)AuroraBankrecentlycompleted are-brandingeffort, submitteda3-yearplan totheOTS, andfiledaQ1 quarterly reportwhereRisk-BasedCapital(RBC)was reportedabove10%(thethresholdforwell-capitalized)Theeventsnotedcontributedto an increaseintheBanks regulatoryrating which, in turn, ledto an unqualified (clean)auditopinionfromtheBanks auditorTheinabilityto accessthebrokered CD marketwillresultin significantliquiditychallenges fortheBankin Q3LBHIandtheBankarecontinuingto engagetheBanks regulators to address theresolutionofthebrokered CD issue;this includes MFA s ettlementdiscussions andcontingency planning(financingsources and/orassetsales)in theeventthatCDissuanceremains elusive($inmillions)9/30/08 12/31/083/31/09Assets 7,207.0 $ 6,513.5$5,693.6$ Liabilities 6,197.96,046.3 5,101.8 Equity1,009.1467.2591.8RBC Ratio10.4%5.9%10.3%


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14 AssetTeamReports (continued)BankBookCommercialLoan PortfolioSummaryby legalentity(May31, 2009(a))Highlights Unfunded Commitments eliminated$13.6 billion ofUnfunded creditexposureOpen LoanTrades over81.9%ofOpenTrades closed, $257.0million inproceeds realized CreditReview Process currentlymanagingthecreditprocess ofallborrowers (retained andpledged)and expectto completethenew formalcreditreview forallborrowers overthesummer($inmillions)CommittedFundedUnfundedTotalRetained PledgedTotalRetainedPledgedTotalRetainedPledged AllSegments LehmanBanks LB CommercialBank(LBCB)5,523 $5,523 $-$ 2,051$ 2,051 $ -$3,471$ 3,471$ -$LehmanBrothers Bank 2,3212,321-198198-2,1232,123-7,8447,844-2,2492,249-5,5955,595-LehmanDebtors LehmanBrothers Holdings Inc. 723613 110204 16440520449 70 Lehman CommercialPaperInc. (b)8,635 6,479 2,1573,0231,3501,673 5,6125,128 484LCPILondonBranch (b)2,960 1,921 1,0391,383700 6831,5781,221 357Asia&Other9969906986 9824 108 2 13,31510,003 3,312 5,5953,1962,3997,719 6,807 913AllOtherLB Bankhaus LondonBranch5,6355,635 -2,1202,120 -3,515 3,515 - CLOs (Pine, Spruce, Verano)(b)3,057-3,0571,952 -1,952 1,105 -1,105 8,692 5,6353,0574,072 2,120 1,9524,6203,5151,105 Grand Total29,851$23,482 $6,369$11,917 $ 7,565 $4,352 $ 17,934$ 15,917$2,017$Notes (a)Amounts arepresented attheirnominalvalues (b)$2.8 billionofPledgedFundedLoans associated withCLOs and othersecuritizations areexcludedfromthis loansummarybecausethey arehandledby RealEstate($2.0 billion)andPrivateEquity ($0.8billion)


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AssetTeamReports (continued)PrincipalInvestments /PrivateEquitySummaryPrincipalInvestments Thetablebelow provides asummary ofthe approximately$9.2billionportfolio ofprincipalandprivateequity investments heldonLehmans balancesheet, broken downbyassetclass 15 Notes (a)Pre-petition valuationreflectsvalues as ofSeptember12, 2008 andexcludes removed positions thatarereflectedbyotherassetteams;Carrying valuereflects March 31, 2009 valuations (not yetavailableforPrivateEquityGroups VentureCapitaland CDO)andadditionalcapitalcalls fundedand sales /redemptions /distributions through May 31, 2009 Numberofinvestments represents fundfamilies;$29.3 millionofthe$57.6 millionin proceeds relatedto VentureCapitaldealreceivedas ofMay31, 2009 remainingproceedswillbereceivedpendingfinalcloseand releaseofescrow;$10.0million ofthe$15.0million inproceeds relatedtoMerchantBankingdealreceived as ofMay31, 2009 remainingproceeds dueinJuly2009;AdditionalInvestments decreased$8.2million dueto an overfundingofa LBREMIIcapitalcall;CurrentUnfundedCommitmentsincreased dueto changein LBREPIcalculation, whichnow accounts forrecallabledistributions DirectInvestmentsportfolio includes the90directinvestments aboveplus 12positions includedin AsiaInvestments (ControlledbyLBHI)Includes SeedCapital, MLP PropFund($98.0million sale September2008), TaxCreditInvestments ($51.9million ofthe$61.9 million inproceeds relatedtoWhiteCreek dealreceivedas ofMay 31, 2009 remainingproceeds willbereleased fromescrowinMay2010), PrincipalAssets Pledgedto JPM as Collateral, EagleEnergy($230.5million saleOctober2008)($ in millions)Post-PetitionActivity9/12/08CashFrom3/31/09 Current# ofPre-Sales /AdditionalMarketCarrying UnfundedCategoryInvestments Petition(a)Redemp. Investments ChangeValue(a)CommitmentsPrivateEquityGroup(b)61,652.0$(95.7)$200.4 $(905.0)$851.7$640.5$DirectInvestments (c)90 5,001.9(95.0)212.7(2,629.9)2,489.8231.8GP /LPInvestments 101 4,518.3 (199.1)106.1(1,993.2)2,432.1 1,641.6 AsiaInvestments (ControlledbyLBHI)163 1,251.1 (90.7)-(464.5)695.9-Other(d)791,919.3(576.3)2.3(354.8)990.5188.3PrincipalInvestments (Controlled byLBHI)439 14,342.7(1,056.7)521.5(6,347.5)7,459.9 2,702.2 AsiaInvestments (Controlled byOtherReceivers)7,2201,717.7 - --1,717.7-TotalPrincipalInvestments 7,659$16,060.3 ($1,056.7)$521.5 ($6,347.5)$9,177.5$2,702.2


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RealEstateAssets Summary RealEstateThetablebelow provides asummaryoftheapproximately $16.0 billion portfolioofrealestatemanaged by Lehman. It excludesapproximately $14.8billionofrealestateassets (as ofSeptember12, 2008)controlledbyotherreceivers and $4.8billion(as ofSeptember12, 2008)related toarepurchaseagreementterminated following Lehmans filing. AssetTeamReports (continued)16 Notes (a)Pre-petition valuation reflects values as ofSeptember12,2008;Carryingvaluereflects thefutureundiscountedcashflows as ofDecember31, 2008 andadditionalcapitalcalls fundedand sales /redemptions /distributionsthroughMay29, 2009 Reflects assets transferredto orfromotherassetteams orreceivers. IntheCommercialNorth America, consists primarilyofrealestatecorporateloans and PEpositions notincludedin funds. Residentialadditionalassets reductionprimarilyreflects transferofMSRs ($ inmillions)9/12/08Post-Petition ActivityPre-AdditionalMarketCarryingCategory Petition(a)Assets (b)Receipts Disbursements ChangeValue(a)CommercialNorth America17,115.0 $950.0 $ (388.3)$250.5$(4,550.7)13,376.5$CommercialEuropeandAsia2,590.6 221.0 (495.8)6.3(601.1)1,721.0Residential(c)3,229.7(1,706.0)(406.6)9.8 (242.9)884.0 TotalRealEstate$22,935.3 ($535.0)($1,290.7)$266.6($5,394.7)$15,981.5


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17 AssetTeamReports (continued)Derivatives BookHighlights Derivatives organizationsetup Approximately 300FTEs, includingthird partyreconciliationandvaluationexperts Robustorganizationwithskilledteams across counterparty interaction, valuation, assignments, middleofficeand operations, legal, finance, and projectmanagementfunctions Fronttoback unwind processes developedand implemented6step portfolio resolution process internalreview, duediligence, tradereconciliation, cashreconciliation, valuation, and settlementSettlementApprovalCommitteeestablished toreview and approvesettlements daily meetings Goodprogress on unwind strategyexecution Priorities established andimplemented:a)meltingassets, b)receivables, and c)payables Activemanagementandresolutionoflivetrades;execution on hedgingprogramAssertivelegalstrategy launchedtoprotectvalueoftheEstateProgress onclaims process;Bardatescheduledand customizedclaimforms approved

18 AssetTeamReports (continued)Derivatives Book(continued)CashCollections Steady progress oncashcollections 012 345 6As of11/07/08As of01/02/09 As of02/13/09 As of03/27/09 As of05/15/09As of 06/30/09$1.8 $0.7 $3.3($ inbillions)$4.2 $1.1 $1.5$0.9$4.8$0.6 $5.8 $1.0


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19 AssetTeamReports (continued)Derivatives Book(continued)Preliminary PortfolioUpdate:Basis ofPresentationMOR ReportedAmounts forassets andliabilitieson thefollowingslides representamounts duefromortocounterparties relatedtoterminated/matured andopen trades andarerecordedatFairValuenetofcashandsecurities collateralreceived andposted, andnetof valuationreserves as recorded as of September14, 2008 intheDebtorsbooks andrecords (MOR refers toMonthlyOperating Report)FairValueis determined byutilizingobservableprices orpricingmodels utilizingaseries ofinputs todeterminethepresentvalueoffuturecash flowsTheDebtors determinedthevalueforderivativerelatedassets andliabilities as follows:a)utilizedtheFairValues as ofSeptember30, 2008 fortrades openas ofSeptember30, 2008, b)utilizedtheFairValues atthedateofmaturityorterminationwherethecounterparty notified theDebtors priortoSeptember30, 2008, or c)utilizedthelastvaluationrecorded by theDebtors priortotheLBHIbankruptcy filing whereaFairValuewas unableto bedetermined orforcounterparties generallywithmorethan 1,000trades outstanding as of September14, 2008 MOR Reported Amounts:a)donotreflectvalueimpairments thatmayresultfromfinalresolutionwithcertain SpecialPurposeVehicles (SPV)andb)havenotbeen adjustedto reflectrealizablevalueofassets or liquidationamounts ofliabilities whichmaydifferfromamounts recordedDetails by LegalEntity as ofDecember31, 2008and updatedas ofmid-2009areexpectedto bepublishedinanMOR inearly August2009



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21 AssetTeamReports (continued)Derivatives Book(continued)Preliminary PortfolioUpdate(continued)($ inmillions)MOR ReportedAmountas of September15,2008-RespectivePetition DateAs ofJune17, 2009June30, 2009 BalanceSheets #of%# ofTrade%CashLegalEntityAmount(a)LegalEntity Agmts OpenLegsOpenLegalEntityCollections (b)Receivables Receivables LBSF 21,631 $LBSF 2,84820.5%544,808 0.6%LBSF 3,533 $ LBCS 2,735LBCS 249 8.0%20,8402.2%LBCS 1,160LBCC 1,395LBCC 2222.3%219,4960.1%LBCC 351LOTC 297LOTC 6119.7%59112.0%LOTC (21)LBFP 236 LBFP 2619.2%342 4.4%LBFP435LBDP 113LBDP 640.0%1,2960.0%LBDP 170 Other(c)647Other70 47.1%42735.4%Other187 TotalReceivable27,054$TotalReceivable3,54018.6%787,8000.5%TotalCollections 5,815 $ Payables Payables LBSF (11,932)$ LBSF 2,09416.1%337,7380.4%LBCS (2,303)LBCS 232 6.5%18,839 1.3%LBCC (778)LBCC 2195.5%30,1870.2%LOTC (760)LOTC 14228.9%2,23110.9%LBFP (45)LBFP 1127.3%2722.2%LBDP (73)LBDP 86 0.0%715 0.0%Other(c)(108)Other166.3%856 0.1%TotalPayable(15,999)$TotalPayable2,800 14.6%390,593 0.5%Notes (a)SeeaforementioneddefinitionofMOR ReportedAmount(b)Cashcollections areas ofSeptember15, 2008through June30, 2009, netofcash outflows (c) OtherLBHIcontrolledentities managedbythederivatives team. MOR amountsas ofSeptember14, 2008orOctober2, 2008.



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23 AssetTeamReports (continued)Derivatives Book(continued)LegalStrategy Continued implementationofassertivelegalrecovery strategyKeylitigationinitiatedon a)setoffissues, b)non-performanceon open contracts, andc)SPV purportedterminations and relatedsubordinationBardatehearing MediationBucketingoflegalissues initiatedKeyLegalIssueDescription ValuationDifferences Estatedoes notagreewithcounterpartyvaluations SetOffClaims Counterparties claimingset-offs ofLehman receivables versus Lehman payables across theiraffiliates and/ orestatecompanies Termination/SubordinationSelectSPV counterparties claiming'subordination' oftheestate's rights versus others Others Includingnon-performanceon opencontracts, termination datedifferences, and defaultinterestrateissues

24 Claims Management


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