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Prior to its bankruptcy, the family of Lehman companies constituted oneof the largest investment banks in the world. Lehman’s businesses included its North Americanbroker-dealer operations, as well as other businesses and assets located around the globe. OnSeptember 15, 2008, LBHI commenced a voluntary proceeding under title 11 of the UnitedStates Code (the “Bankruptcy Code”), and other Lehman entities filed for bankruptcy shortlythereafter. Lehman Brothers Inc. (“LBI”) filed its bankruptcy proceeding on September 19,2008. LBI was the entity through which Lehman operated its North American broker-dealerbusiness.
Right after LBHI’s bankruptcy filing, certain Barclays and Lehmanexecutives began negotiations for Barclays’ purchase of Lehman’s North American broker-dealer business and related support systems and assets as well as key pieces of real estate,including the flagship Lehman building at 745 Broadway, New York City. Barclays ultimatelypurchased these assets in a sale transaction negotiated, approved and executed within the span of just a few days (the “Sale Transaction”).
The Court approved the Sale Transaction shortly aftermidnight on September 20, 2008, and the deal closed on Monday, September 22, 2008, just aweek after LBHI had filed for bankruptcy and just three days after LBI’s bankruptcy filing.3.
Since then, Lehman has learned (after taking Court-ordered Rule 2004discovery) that, contrary to the terms expressed in the deal documents and the disclosures to theCourt about the Sale Transaction, the Sale Transaction was secretly structured from the outset togive Barclays an immediate and enormous windfall profit. Certain Lehman executives knew, butdid not reveal to others in Lehman management or to Lehman’s attorneys, that Lehmannegotiators had agreed to give Barclays an undisclosed $5 billion discount off the book value of the assets transferred to Barclays, and later agreed to undisclosed transfers of billions more in so-