IN RE LEHMAN BROTHERS HOLDINGS INC.

No. 17 Civ. 1224 (LGS).

In re: LEHMAN BROTHERS HOLDINGS INC., et al., Debtors. LEHMAN BROTHERS SPECIAL FINANCING INC., Appellant, v. BANK OF AMERICA NATIONAL ASSOCIATION, et al., Appellees.

United States District Court, S.D. New York.

March 14, 2018.

Editors Note
Applicable Law: 28 U.S.C. § 0158
Cause: 28 U.S.C. § 0158 Notice of Appeal re Bankruptcy Matter (BA
Nature of Suit: 422 Bankruptcy Appeal (801)
Source: PACER


Attorney(s) appearing for the Case

Lehman Brothers Special Financing Inc., Appellant, represented by Mara Rose Lieber , Wollmuth Maher & Deutsch LLP, Nicholas Grant Olear Veliky , Wollmuth Maher & Deutsch LLP, Paul DeFilippo , Wollmuth Maher & Deutsch LLP, Vincent Ted Chang , Wollmuth Maher & Deutsch LLP, William Francis Dahill , Wollmuth Maher & Deutsch LLP & William Andrew Maher , Wollmuth, Maher & Deutsch, LLP.

Bank of America National Association, Appellee, represented by Bradley Robert Schneider , Munger, Tolles & Olson, pro hac vice & Todd J. Rosen , Munger, Tolles & Olson, pro hac vice.

U.S. Bank National Association & Trustee U.S. Bank Trust National Association, Appellees, represented by Franklin Henry Top , Chapman and Cutler LLP, pro hac vice & Scott Austin Lewis , Chapman and Cutler LLP, pro hac vice.

Wells Fargo Bank National Association, Appellee, represented by Casey Brian Howard , Locke Lord Bissell & Liddell LLP.

AIG, Inc., Appellee, represented by Christy Lynn Rivera , Norton Rose Fulbright US LLP & David M. LeMay , Chadbourne & Park, L.L.P.

ANZ Nominees Limited & Morgans Financial Limited, Appellees, represented by Lewis J. Liman , Cleary Gottlieb.

Balmoral Australia Pty Ltd., Gosford City Council & Parkes Shire Council, Appellees, represented by Andrew Kenton Glenn , Kasowitz, Benson, Torres & Friedman, LLP.

BNY Mellon Corporate Trustee Services Ltd., The Bank of New York Mellon National Association, The Bank of New York Mellon Trust Company, N.A. & The Bank of New York Mellon, London Branch, Appellees, represented by Eric Andrew Schaffer , Reed Smith, LLP & Michael J. Venditto , Reed Smith LLP.

Cheyne CLO Investments I Ltd., Appellee, represented by Christopher Marshall Desiderio , Nixon Peabody LLP.

Citicorp Nominees Pty Ltd. & Citigroup Global Markets, Inc., Appellees, represented by Brad Scott Karp , Paul Weiss, Stephen J. Shimshak , Paul, Weiss, Rifkind, Wharton & Garrison & Theodore Von Wells, Jr. , Paul Weiss.

Class V Funding III, Corp., Class V Funding III, Ltd., Diversey Harbor ABS CDO, Inc., Diversey Harbor ABS CDO, Ltd., KLIO II Funding Corp., KLIO II Funding Ltd., KLIO III Funding Corp., KLIO III Funding Ltd., Pinnacle Point Funding Corp., Pinnacle Point Funding Ltd., Whitehawk CDO Funding, LLC & Whitehawk CDO Funding, Ltd., Appellees, represented by Franklin Henry Top , Chapman and Cutler LLP, pro hac vice.

Continental Life Insurance Company of Brentwood Tennessee, Marsh & McLennan Companies, Inc. Stock Investment Plan, Marsh & McLennan Master Retirement Trust, Modern Woodmen of America, Inc., PHL Variable Insurance Company, Phoenix Life Insurance Company, Putnam Dynamic Asset Allocation Funds - Growth Portfolio, Putnam Intermediate Domestic Investment Grade Trust & Putnam Stable Value Fund, Appellees, represented by Joshua Dorchak , Morgan Lewis & Bockius, LLP.

Country Life Insurance Company, Appellee, represented by Ezra Dodd Church , Morgan, Lewis & Bockius LLP, pro hac vice & J. Gordon Cooney, Jr. , Morgan, Lewis & Bockius LLP.

Credit Suisse Securities (Europe) Ltd. & Credit Suisse Securities (USA) LLC, Appellees, represented by Michael A. Paskin , Cravath, Swaine & Moore LLP & Richard W. Clary , Cravath, Swaine & Moore LLP.

Deutsche Bank Trust Company Americas, State Street Bank and Trust Company, State Street Global Advisors & State Street International Ireland Limited, Appellees, represented by Christopher Marshall Desiderio , Nixon Peabody LLP & Richard C. Pedone , Nixon Peabody LLP.

Elliott International, L.P., Appellee, represented by Matthew J. Gold , Kleinberg,Kaplan,Wolff & Cohen,P.C.

Euroclear Bank S.A./N.V., Appellee, represented by Charles G. Berry , Arnold & Porter Kaye Scholer LLP.

First Northern Bank and Trust Company, Appellee, represented by Jon Theodore Pearson , Ballard Spahr LLP, pro hac vice, William A. Slaughter , Ballard Spahr LLP, pro hac vice & Leslie C. Heilman , Ballard Spahr, LLP.

Garadex Inc. & Gatex Properties Inc., Appellees, represented by Edward Ambrose Smith, III , Venable LLP.

General Security National Insurance & SCOR Reinsurance Company, Appellees, represented by Daniel Joseph Lanigan , Hogan Lovells LLP, Peter A. Ivanick , Hogan Lovells US LLP & Scott Walter Reynolds , Chaffetz Lindsey LLP.

Genworth Life and Annuity Insurance Co., Magnetar Constellation Fund II Ltd., Magnetar Constellation Master Fund III Ltd., Magnetar Constellation Master Fund Ltd. & UniCredit Bank AG, London Branch, Appellees, represented by Alex Jason Kaplan , Sidley Austin LLP, Alex Rafael Rovira , Sidley Austin LLP, Andrew Paul Propps , Sidley Austin LLP & Nicholas Primer Crowell , Sidley Austin LLP.

Goldman Sachs International & Goldman, Sachs & Co., Appellees, represented by Carmine D. Boccuzzi, Jr. , Cleary Gottlieb & Emily Justine Balter , Cleary Gottlieb Steen & Hamilton LLP.

JP Morgan Chase Bank, National Association & JP Morgan Securities, PLC, Appellees, represented by Ian Boczko , Wachtell, Lipton, Rosen & Katz.

LGT Bank in Liechtenstein Ltd., Appellee, represented by Gregory Francis Hauser , Wuersch & Gering LLP.

Lower Murray Water, Appellee, represented by Jared Riley Clark , Phillips Nizer LLP.

Mariner LDC, Structured Credit Opportunities Fund II, LP & Tricadia Credit Strategies Master Fund, Ltd., Appellees, represented by Thomas James Fleming , Olshan Frome Wolosky LLP.

MBIA, Inc., Appellee, represented by Kevin James Biron , Morgan Lewis & Bockius, LLP.

MoneyGram Securities LLC, Appellee, represented by Phillip William Bohl , Gray, Plant, Mooty, Mooty & Bennett, P.A.

Morgan Stanley & Co., Incorporated, Appellee, represented by John Henry Thompson , McGuire Woods LLP.

Mulberry Street CDO, Ltd., Appellee, represented by Benay Lauren Josselson , Seward & Kissel LLP, Christopher Marshall Desiderio , Nixon Peabody LLP & Jack Yoskowitz , Seward & Kissel LLP.

Natixis Financial Products LLC, Appellee, represented by Scott Walter Reynolds , Chaffetz Lindsey LLP.

Ohio Public Employee Retirement System, Appellee, represented by Aaron M. Bernay , Frost Brown Todd LLC, pro hac vice, Nelson D. Alexander , Frost Brown Todd LLC, pro hac vice, Paige Leigh Ellerman , Taft Stettinius & Hollister LLP, pro hac vice & Ronald E. Gold , Frost Brown Todd LLC, pro hac vice.

PCA Life Assurance Co. Ltd., Appellee, represented by Bryan Krakauer , Sidley Austin LLP, pro hac vice, Jonathan Warren Muenz , Sidley Austin LLP & Nicholas Primer Crowell , Sidley Austin LLP.

RGA Reinsurance Co., Appellee, represented by Emilio B. Nicolas , Jackson Walker L.L.P. & Patricia Baron Tomasco , Munsch Hardt Kopf & Harr, P.C.

SBSI, Inc. & Susquehanna Bank, Appellees, represented by Ezra Dodd Church , Morgan, Lewis & Bockius LLP, pro hac vice, J. Gordon Cooney, Jr. , Morgan, Lewis & Bockius LLP & John C. Goodchild, III , Morgan, Lewis & Bockius LLP.

Security Benefit Life Insurance Co., Appellee, represented by David Jeffrey Adler , McCarter & English, LLP.

Shenandoah Life Insurance Company, Appellee, represented by Joseph John Saltarelli , Hunton & Williams, LLP & Shannon Eileen Daily , Hunton & Williams LLP.

Shinhan Bank, Appellee, represented by Brian David Koosed , K&L Gates, John Alexander Bicks , K&L Gates LLP & Priya Chadha , K&L Gates LLP.

The Liverpool Limited Partnership, Appellee, represented by Marc R. Rosen , Kleinberg,Kaplan,Wolff & Cohen,P.C. & Matthew J. Gold , Kleinberg,Kaplan,Wolff & Cohen,P.C.

Zais Investment Grade Limited II & ZAIS Investment Grade Limited X, Appellees, represented by Amanda Duncan Darwin , Nixon Peabody LLP, Christopher Marshall Desiderio , Nixon Peabody LLP & Richard C. Pedone , Nixon Peabody LLP.

Goldman Sachs & Co. LLC, Appellee, represented by Carmine D. Boccuzzi, Jr. , Cleary Gottlieb.

Securities Industry and Financial Markets Association & International Swaps and Derivatives Association, Inc., Amicuss, represented by Thomas Charles Mitchell , Orrick, Herrington & Sutcliffe LLP.

Structured Finance Industry Group, Inc., Amicus, represented by Timothy P. Harkness , Freshfields Bruckhaus Deringer Us LLP, David Yury Livshiz , Friedfields Bruckhaus Deringer US LLP & Shannon Marie Leitner , Freshfields Bruckhaus Deringer Us LLP.


OPINION AND ORDER

Appellant Lehman Brothers Special Financing Inc. ("LBSF") appeals the Bankruptcy Court's Memorandum Decision ("Opinion"), In re Lehman Bros. Holdings Inc., 553 B.R. 476 (Bankr S.D.N.Y. 2016), granting Noteholder Defendants...

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