Notice issued by the bankruptcy trustee of Lehman Brothers Securitires N.V. on June 8, 2010 (see PDF at the end of this question).
Lehman Brothers Holding Inc. ("LBHI") applied for Chapter 11 protection in the US on September 15, 2008. Of interest to investors are the ongoing bankruptcy proceedings against Lehman Brothers companies that issued or guaranteed Lehman derivatives listed on the Swiss market as of September 15, 2008. Investors’ claims will be primarily and mainly against these debtor institutes.
The vast majority of Lehman products concerned were issued by Lehman Brothers Treasury Co. B.V. ("LBT"), a Dutch company domiciled in Amsterdam. Bankruptcy proceedings under Dutch law were instigated against that company on October 8, 2008. Approximately a dozen products have been issued by Lehman Brothers Securities N.Y. ("LBT"), a company domiciled in the Netherlands Antilles. Bankruptcy proceedings against that company were instigated on January 30, 2009. For more information on the ongoing proceedings regarding both companies, go to the site http://www.lehmanbrotherstreasury.com. (regarding LBT) and www.ekvandoorne.com/bankruptcy-lehman-brothers-securities/38-general-information (regarding LBS).
A few products were issued by full LBHI subsidiary Lehman Brothers Finance AG ("LBF"), a Swiss, limited-liability company domiciled in Zurich. In its directive of October 29, 2008, the Swiss Federal Banking Commission (today: FINMA) has placed the company under its authority, ordered its liquidation and had it struck from Switzerland’s commercial register. PricewaterhouseCoopers AG, Zurich, was appointed liquidator. The calls for creditors to file their claims until and including December 23, 2008, were published in the Swiss Official Gazette of Commerce on November 18, 19 and 20, 2008.
On January 7, 2009, banking institution bankruptcy proceedings were initiated against LBF pursuant to Art. 33 ff. of the Federal Law on Banks and Savings Banks. According to FINMA, the proceedings were initiated on determination of excessive debt. The bankruptcy notice can be found on the FINMA website http://www.finma.ch/d/sanktionen/insolvenz1/insolvenzen/Seiten/details.aspx?orgid=5.
Previously mentioned Pricewaterhouse-Coopers AG was again appointed bankruptcy liquidator. Claims were to be filed up to and including February 27, 2009 with LBF, to the attention of the liquidators. According to FINMA, calls for claims made in the bankruptcy publication require no additional claims to be filed. In other words, claims made under the liquidation proceedings up to and including December 23, 2008 are part of the present bankruptcy proceedings. For details about the ongoing proceedings, go to the liquidator’s website http://www.pwc.ch/en/microsites/lehman_brothers_finance.html.
Because the Lehman Group structured products listed on the Swiss market were guaranteed by parent company Lehman Brothers Holding Inc. (LBHI), investors are advised to monitor the bankruptcy process. In its bankruptcy decree of July 2, 2009, the bankruptcy court specified the following claim deadlines:
- claims against LBHI resulting from "Programs Securities" had to be filed by November 2, 2009. Link to ist of "Programs Securities".
- other claims had to be filed until September 22, 2009
It appears that structured products publicly sold in Switzerland have in fact been "Programs Securities". SSPA recommends investors to consult their investment advisors regarding these claims, because generally investment advisors are lodging their customers claims. Indeed, the relevant LBHI bankruptcy decree stated that depositary banks may make "Programs Securities" claims without divulging the identity of the investor.