NEW YORK--(EON: Enhanced Online News)--The joint administrators of LB Holdings Intermediate 2 Limited (in Administration) (LBHI2) today announced that LBHI2 has entered into a commitment letter and head of terms (the Transaction) with Elliott Management Corporation and certain of its affiliates (Elliott), King Street Capital Management, L.P. and certain of its affiliates (King Street) and Lehman Brothers Holdings Inc. (LBHI) in connection with the claims of LBHI2 in the estate of Lehman Brothers International (Europe) (in administration) (LBIE).
The Transaction provides for an initial payment to LBHI2 of approximately £650,000,000 along with the right to receive future contingent sums. In turn Elliott and King Street, alongside LBHI2 will acquire rights with respect to all of LBHI2's claims against LBIE.
The Transaction also provides for LBHI2 to share in certain claims against the LBIE estate held by Elliott and King Street.
Commenting on the announcement Derek Howell, joint administrator of LBHI2 said:
"I believe that the Transaction represents an excellent outcome for the creditors of LBHI2. Working closely with Elliott and King Street, I am hopeful that it will lead to an early resolution of the outstanding issues between LBHI2, Lehman Brothers Limited (in Administration) (LBL) and LBIE which, in turn, may serve to expedite the final resolution of all three administrations."
LBHI2 is the holder of the subordinated debt in LBIE. LBHI is the ultimate shareholder and indirect significant majority creditor of LBHI2. Elliott and King Street are significant creditors of LBIE.