Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 2016, for the Corporate Backed Trust Certificates, Goldman Sachs Capital I Securities-Backed Series 2004-6 Trust (the "Trust"). The Trust is a common law trust formed in 2004 with Lehman ABS Corporation as the Depositor. The Trust's assets consist solely of capital securities issued by Goldman Sachs Capital I. The Depositor is a wholly-owned, indirect subsidiary of Lehman Brothers Holdings Inc. (LBHI), which filed for Chapter 11 bankruptcy in September 2008. The Trust has no voting stock or common equity held by non-affiliates.
Key Financial Metrics
The filing explicitly states that Selected Financial Data, Management's Discussion and Analysis, and Financial Statements are "Not Applicable" for this reporting period. Consequently, the filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity metrics within the body of this 10-K. Financial performance is referenced only through the incorporation of Trustee Distribution Statements filed on Form 8-K.
- Revenue/Profit: Not provided in this filing.
- Cash Flow/Liquidity: Not provided in this filing.
- Distributions: Distribution statements for the period January 1, 2016, through December 31, 2016, were filed on Form 8-K on February 26, 2016, and August 19, 2016, but specific amounts are not detailed in this text.
Material Changes and Legal Proceedings
The primary material event during the period involved litigation regarding the payment of "Extraordinary Trust Expenses" related to an adversary proceeding filed by Lehman Brothers Special Financing Inc. (LBSF) against the Trust.
- April 2016: The Trustee filed a petition in the Minnesota Court requesting authorization to use Trust assets to pay legal fees and expenses associated with defending the LBSF litigation.
- August 2016 Ruling: The Minnesota Court ruled that costs for mediation and defense constituted Extraordinary Expenses. The Court determined that payment could only occur via: (a) 100% consent of Certificateholders, (b) reimbursement by a lesser percentage of Certificateholders, or (c) indemnification by the Depositor.
- Outcome: The Court found no change in circumstances requiring a modification of the Trust unless all three payment methods were unavailable.
Guidance, Outlook, and Risks
The filing contains no management guidance, outlook, or risk factors specific to the Trust's operations, as these sections are marked "Not Applicable."
- Underlying Issuer Risk: The Trust's assets are dependent on The Goldman Sachs Group, Inc. The filing notes that neither the Depositor nor the Trustee has verified the accuracy of Goldman Sachs' reports, and there can be no assurance that undisclosed events affecting Goldman Sachs have not occurred.
- Bankruptcy Context: The Depositor remains a subsidiary of LBHI, which is subject to the ongoing effects of its 2008 Chapter 11 bankruptcy plan confirmed in 2011.
Investor Verification Checklist
- Verify the specific distribution amounts paid to certificateholders by reviewing the Form 8-K filings dated February 26, 2016, and August 19, 2016, which are incorporated by reference.
- Confirm the current status of the adversary proceeding between Lehman Brothers Special Financing Inc. and the Trust, as the August 2016 court ruling left the funding of defense costs contingent on specific conditions.
- Review The Goldman Sachs Group, Inc.'s periodic reports (File No. 001-14965) to assess the financial health of the underlying securities issuer, as the Trust's assets are solely dependent on them.
- Check for any subsequent filings regarding the "Extraordinary Expenses" payment methods (100% consent, partial reimbursement, or Depositor indemnification) to determine if the Trust's ability to pay legal fees has been resolved.