Business Context and Reporting Period
This Form 8-K is filed by Lehman ABS Corporation on behalf of the Corporate Backed Trust Certificates, Goldman Sachs Capital I Securities-Backed Series 2004-6 Trust. The report covers events occurring on February 16, 2016, and references prior notices from November 30, 2015. The Trust was formed in 2004 and holds junior subordinated debentures issued by The Goldman Sachs Group, Inc. The Depositor is a subsidiary of Lehman Brothers Holdings Inc. (LBHI), which has been in Chapter 11 bankruptcy proceedings since September 2008.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document confirms that a distribution was made to certificate holders on February 16, 2016, but the specific amount is contained in Exhibit 99.1 and is not detailed in the body of this report.
Material Changes and Events
- Distribution Event: A distribution was made to holders of the Trust Certificates on February 16, 2016.
- Legal Proceedings: On November 30, 2015, the Trustee notified holders that LBHI (as Plan administrator for Lehman Brothers Special Financing Inc. or LBSF) initiated a mediation proceeding regarding a complaint filed on September 18, 2015.
- Dispute Details: The complaint arises from a swap transaction between LBSF and the Trust. LBSF seeks a determination that it is entitled to a Termination Payment or Fixed Payments.
- Asset Implications: If an Early Termination Payment or judgment is payable by the Trust to LBSF, it may be satisfied by distributing a portion of the underlying securities or their proceeds to LBSF.
Outlook, Risks, and Contingencies
Trustee Fees and Costs: The filing states that prior to any distribution to certificate holders, funds held under the Trust Agreement may be used to pay fees and costs incurred by the Trustee. These costs include compensation for time spent and legal fees to pursue remedies or defend claims. The Trustee intends to file a Trust Instruction Proceeding in Ramsey County, Minnesota, to seek approval to use Trust Assets to pay costs incurred in defending the Trust.
Underlying Asset Risk: The Trust holds debentures issued by The Goldman Sachs Group, Inc. The filing includes a disclaimer that neither Lehman ABS Corporation nor the Trustee has verified the accuracy of Goldman Sachs' public reports, and there can be no assurance that undisclosed events affecting the issuer have not occurred.
Investor Verification Checklist
- Review Exhibit 99.1 (Trustee's Distribution Statement) to determine the specific dollar amount of the February 16, 2016 distribution.
- Monitor the status of the mediation proceeding between LBSF and the Trust regarding the swap transaction complaint.
- Verify the outcome of the Trust Instruction Proceeding in Ramsey County, Minnesota, regarding the use of Trust Assets for legal defense costs.
- Assess the potential impact of any Termination Payment or judgment on the remaining underlying securities available for distribution to certificate holders.