Distributions to creditors and what remains of LBHI, 2012-2026

analysisThe indenture trustee's notices to holders of LBHI's senior securities under the indenture of September 1, 1987 begin with a notice of an event of default in October 2008 and continue with a notice for each plan distribution. On September 2, 2009 the trustee filed a consolidated claim for the senior noteholders (Claim Number 10082), later classified in Class 3; according to the trustee's June 2012 notice, the debtors then estimated a Class 3 recovery of 21.1%; the first distribution to the trustee was made on April 17, 2012, with later ones twice a year if they total at least $10 million. The notice for the thirty-third distribution, on October 1, 2026, gives the noteholders' allowed claim as $48,783,940,671.72; with $3,991,978.72 added, cumulative distributions reached 46.827210%. ^{1 2 3}

analysisLBHI's quarterly report as of June 30, 2025 states that through the thirtieth distribution, on April 3, 2025, the debtors had paid $129.4 billion, of which $96.4 billion went to claims owned or formerly owned by third parties. It estimates total recoveries of 46.859% for senior unsecured claims (Class 3), 37.767% for senior affiliate claims (Class 4A), 29.487% for third-party guarantee claims (Class 5) and 43.864% for general unsecured claims (Class 7), with nothing for the subordinated classes and $203 million of future cash distributions. LBHI states that these reports are not prepared under generally accepted accounting principles and are not audited or reviewed. ¹

analysisThe unaudited balance sheet as of June 30, 2025 shows total assets of $248 million, mostly $99 million of cash and $133 million due from affiliates, against liabilities subject to compromise of $128,170 million and stockholders' equity of minus $127,936 million; LBHI states that it is not prepared under GAAP or audited. As plan administrator LBHI files such reports with the court and furnishes them through the Plan Trust's Form 8-K filings, for example in September 2024 and August 2025. ^{1 2 3}

analysisAt June 30, 2025 LBHI's case, No. 08-13555, was the only one of the 23 debtors' cases still open; LBSF's case, for example, had been closed on July 1, 2021. The claims agent's docket listed 61,928 entries in mid-October 2026, including LBHI's monthly operating report for August 2026, the notice of the thirty-third distribution and continuing notices of claim transfers. For tax purposes the Plan Trust is a liquidating grantor trust whose grantors are the former stockholders; its 2025 statement gives its sole asset as the single LBHI share issued on March 6, 2012. ^{1 4 5 6 7}

analysisIn a November 2019 declaration LBHI's treasurer Anton Kolev described a court-authorised claims consolidation auction: the plan administrator approached about 30 potential sponsors and chose BKM Holdings (Cayman) Ltd. for Classes 3, 4B and 8, Seaport Loan Products LLC for Classes 4A and 5 and Emery 68, L.L.C. for Classes 7 and 9A, each offering to buy eligible claims at a stated percentage. According to a 2016 case study published by Alvarez & Marsal, A&M took over management of the estate's assets, including a global real-estate portfolio marked at $23 billion, much of it encumbered before the bankruptcy through repurchase agreements and pledges. ^{1 2}

analysisLBHI's 2025 report describes a suit filed in New York in July 2017 by 2138747 Ontario Inc., formed by the founder of Skypower Corp., against LBHI and Ontario's own former law firm, seeking at least $175 million for failing to document and convey claims of an indirect non-debtor LBHI subsidiary against Samsung; the court dismissed all claims except breach of contract against LBHI. The defendants had moved to dismiss and both sides moved for summary judgment on liability; the parties agreed to resolve the matter in July 2025. ¹