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Lehman Commercial Paper eyes termination of Sasco securitization
By Lisa Kerner
Charlotte, N.C., May 26 - Lehman Brothers Holdings Inc. debtor Lehman Commercial Paper Inc. requested court approval of a termination agreement with Sasco 2008-C2, LLC, Wells Fargo Bank, NA, Wachovia Bank, NA and TriMont Real Estate Advisors, Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Lehman Commercial Paper and Lehman Brothers collectively own all of the notes and preferred interests issued by Sasco, a special purpose entity formed to hold interests in commercial real estate loans and other assets and to issue securities supported by the cashflows from such interests.
The value of the underlying real estate assets can be maximized through active management, which is impeded at times by the current structure of the Sasco securitization, the filing said.
A hearing is scheduled for June 15.
Under the agreement, Lehman Commercial Paper and Lehman Brothers will pay the following amounts to the applicable party on the termination date pro rata in proportion to each of their holdings of the notes: $62,117.35 to Wells Fargo; $17,607,355.69 to Wachovia; and $275,785.45 to TriMont.
Such amounts may be increased by the amounts of fees and expenses that are billed within 90 days after the date of the termination agreement.
Also, Wells Fargo will withdraw with prejudice all filed proofs of claim filed against any of the debtors based on the transaction documents and the Sasco securitization.
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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