Lehman Joint Chapter 11 Plan Now Supported by Creditors Holding More Than $160 Billion in Claims

Lehman Brothers Holdings Inc. and its affiliated debtors filed a supplement to their Joint Chapter 11 Plan with the U.S. Bankruptcy Court for the Southern District of New York today, incorporating 9 major settlement agreements, including 6 agreements with 67 of their significant, non-controlled affiliates, and 3 agreements with large third-party creditors. The parties to these settlement agreements and other major creditors that in the aggregate assert more than $160 billion in claims have all executed plan support agreements. The plan supplement also includes an updated list of these creditors, totaling more than 150 to date, that have executed agreements to support the Debtors' plan. The Debtors' filing today disclosed the terms of settlements with the following affiliates: Lehman Brothers International (Europe) and 56 other PwC controlled UK affiliates, Lehman Luxembourg, Lehman Japan and Lehman Brothers Securities N.V. (Curacao). To date, the Debtors have reached settlements with substantially all of their affiliates, including those in Germany, Hong Kong, the Netherlands and Singapore. The Debtors' filing also disclosed the terms of settlements with some of the Debtors' most significant third-party creditors, including the Bundesverband Deutscher Banken and the Deutsche Bundesbank. Lehman also announced that it reached an agreement in principle resolving the claims of Lehman Re Ltd., one of its affiliates in Bermuda, which is subject to documentation and various approvals, including approval of the Bankruptcy Court as part of the Debtors' plan confirmation and of a Bermuda court. There is no assurance at this time that this agreement will be consummated, and no details about the agreement in principle are available at this time.