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Lehman Brothers Chapter 11 Examiner’s Report 2 of 9

Lehman Brothers Chapter 11 Examiner’s Report 2 of 9

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Publicado porCervino Institute
Lehman Brothers Holdings Inc. Chapter 11 Proceedings Examiner’s Report, Volume 2 - Section III.A.2: Valuation; Section III.A.3: Survival. The Examiner in this matter was Anton R. Valukas, Chairman of Jenner & Block.
Lehman Brothers Holdings Inc. Chapter 11 Proceedings Examiner’s Report, Volume 2 - Section III.A.2: Valuation; Section III.A.3: Survival. The Examiner in this matter was Anton R. Valukas, Chairman of Jenner & Block.

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Published by: Cervino Institute on Mar 13, 2010
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05/12/2014

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After relatively small reductions in the marks reflecting excess carry in June and

July 2008, Lehman took its final significant Archstone write‐down in August 2008,

reducing bridge equity by $110 million and permanent equity by $15 million.1575  Kebede

told the Examiner that this write‐down was larger than he thought was warranted, and

he did not know why the write‐down was taken.1576  An e‐mail exchange between

Neighbor and Hughson included the analysis and the underlying assumptions used to

arrive at the $110 million write‐down, and is discussed in the Examiner’s analysis of the

reasonableness of Lehman’s Archstone marks.1577

1573 Id.

1574 Lehman’s third quarter covered June 1, 2008, through August 31, 2008.

1575 Lehman, Global Real Estate 2008 Mark Downs, at p. 12 [LBHI_SEC07940_7620384].

1576 Examiner’s Interview of Abebual A. Kebede, Sept. 29, 2009, at p. 10.

1577 In an e‐mail to Hughson on September 12, 2008, Neighbor wrote that that the August mark was
calculated using a stressed rental growth compound annual growth rate (“CAGR”) of 4.9% and an
increased exit capitalization rate of 5.57%.  The platform value remained unchanged at $2 billion.  E‐mail
from Webster Neighbor, Lehman, to Paul A. Hughson, Lehman (Sept. 12, 2008) [LBEX‐DOCID 2903130].
Neighbor told the Examiner that he did not recall whether valuation work occurred in the third quarter of
2008 in particular, and he did not recall whether there was a third quarter Archstone write‐down of $110

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