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Lehman debtors get OK to sell Libro note, equity for $15.88 million
By Lisa Kerner
Charlotte, N.C., Dec. 1 - Lehman Brothers Special Financing Inc. was granted approval to sell its interest in a note and its equity in Libro Companhia Securitizadors de Creditos Financeiros to Jive Investments Holding Ltd. for $15.88 million, according to an attorney familiar with the case.
As previously reported, Lehman Brothers Special Financing and its non-debtor affiliate LB I Group Inc. own all of the outstanding equity of Libro, a Brazilian entity that was formed for the purpose of investing in fixed-income and distressed assets in Brazil.
Lehman Brothers Special Financing and LB I Group also own some notes issued by Libro.
The outstanding principal balance of the note held by Lehman Special Financing is $3.83 million, and the outstanding principal balance of the note held by LB I is $12.74 million.
Lehman debtors decided to wind down their South American operations and shifted their focus from the identification of fixed-income and distressed asset investment opportunities to the realization of value from their debt and equity investments, a prior court filing said.
Of the purchase price, $3.67 million will be paid to Lehman Special Financing directly and an additional $9.06 million will be paid to Lehman Special Financing by LB I from its share of the purchase price as a result of a reallocation agreement.
As a result of these transactions, Lehman Special Financing said its gross recovery from its debt and equity interests in Libro will be $12.52 million.
New York-based Lehman Brothers Holdings Inc. was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.
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