Lehman Commercial Paper granted OK to terminate Sasco securitization

By Caroline Salls

Pittsburgh, June 16 - Lehman Brothers Holdings Inc. debtor Lehman Commercial Paper Inc. received 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 June 15 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 cash flows 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 motion said.

Under the agreement, Lehman Commercial Paper and Lehman Brothers will pay $62,117 to Wells Fargo, $17.61 million to Wachovia and $275,785 to TriMont on the termination date in proportion to each of their holdings of the notes.

The amounts to be paid may be increased by the amounts of fees and expenses that are billed within 90 days of the termination agreement date.

Also, Wells Fargo will withdraw all proofs of claim filed against any of the Lehman 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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