Lehman Brothers Treasury Announces Results of Solicitation and Settlement With Affiliates

AMSTERDAM–(BUSINESS WIRE)–In connection with its previously announced partial wind-down, Lehman
Brothers Treasury Co. B.V. in liquidation (“LBT”) today, through
its U.S. counsel Kramer Levin Naftalis & Frankel LLP, announced that it
has obtained the results of its solicitation process pursuant to which
certain qualified noteholders were given the option to receive
substitute notes in exchange for their eligible notes. Based on the
information provided by the relevant clearing systems which remains
subject to further review and adjustment, noteholders holding eligible
notes representing approximately €14 billion of the €24,755,245,547.91
in total acknowledged or otherwise admitted claims against LBT elected
to receive substitute notes in exchange for such eligible notes.
Accordingly, in accordance with the partial wind-down procedures, LBT
will retain approximately US$19.6 billion of its US$34,548,000,000.00
intercompany claim (the “Intercompany Claim”) against Lehman Brothers
Holdings Inc. (“LBHI”) that will be used to fund future distributions to
holders of substitute notes.

LBT also announced that, as contemplated by its partial wind-down, it
has entered into a settlement agreement (the “Settlement Agreement”)
with its former affiliates LBHI and Lehman Brothers Special Financing
Inc. (“LBSF”). LBHI and LBSF are holders of admitted ordinary claims
against LBT in the aggregate amounts of €2,435,117,645.74 and
€750,434,794.48, respectively, representing approximately 9.84% and
3.03% of all acknowledged or otherwise admitted claims against LBT. The
Settlement Agreement provides, among other things, that in full and
final satisfaction of their respective ordinary claims against LBT, LBHI
and LBSF shall receive (i) an in-kind distribution of portions of the
Intercompany Claim in the respective amounts of US$3,398,408,804.40 and
US$1,047,294,046.41, and (ii) a proportionate amount of LBT’s cash on
hand subject to various deductions, addbacks and adjustments for
purposes of allocating various expenses and reserves.

In accordance with the partial wind-down, those creditors of LBT who
were not eligible (or did not elect) to receive substitute notes will
receive a final cash distribution from LBT funded with certain available
cash and the proceeds of the sale of a portion of the Intercompany Claim
through an auction process which is currently scheduled to occur on
Wednesday March 20, 2019. As a result of the solicitation process and
the Settlement Agreement, LBT expects to place approximately US$10.5
billion of the Intercompany Claim into the auction.

For more information on the partial wind-down, including information
about the intercompany claim sale, the final cash distribution, and
anticipated timelines, an Information Notice has been posted to LBT’s
website at www.lehmanbrotherstreasury.com.

The foregoing is subject to further consents and authorizations and LBT
retains sole discretion to abandon or otherwise discontinue any note
substitution or sale process at any time, which, if abandoned or
discontinued, could result in a termination of the Settlement Agreement.
Accordingly, there can be no assurances that either the note
substitution, the sale process, or the Settlement Agreement will be
effectuated, or if effectuated, the timing thereof. There also can be no
assurance as to the amount of cash distributions, if paid, now or in the

LBT does not undertake to publicly update its disclosure to reflect
developments in this matter.


Daniel Eggermann, Kramer Levin Naftalis & Frankel LLP
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