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 date is April 27, 2016. The Trust was formed in 2004 with Lehman ABS Corporation as the Depositor, a subsidiary of Lehman Brothers Holdings Inc. (LBHI). LBHI and its affiliates filed for Chapter 11 bankruptcy in September 2008, and a reorganization plan became effective on March 6, 2012.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses on legal proceedings and administrative expenses rather than operational financial performance.
Material Changes and Events
On April 27, 2016, the Trustee filed a petition with the District Court for the Second Judicial District of the State of Minnesota. The petition seeks court authorization to use Trust assets to pay:
- Accrued fees and expenses, including attorneys' fees, related to an adversary proceeding filed by Lehman Brothers Special Financing Inc. (LBSF) against the Trust in the U.S. Bankruptcy Court for the Southern District of New York.
- Future fees and expenses incurred in defending the litigation and participating in related mediation.
Under the Trust's governing documents, the Trustee is restricted from incurring "Extraordinary Trust Expenses" without specific authorization. A hearing on this petition is scheduled for June 13, 2016.
Outlook, Risks, and Contingencies
The primary risk identified is the ongoing litigation initiated by LBSF against the Trust. The Trustee's ability to defend this litigation is contingent upon the Minnesota Court's approval to utilize Trust assets for legal fees, which are classified as Extraordinary Trust Expenses. Any objections to the petition must be filed with the Minnesota Court no later than five days before the June 13, 2016 hearing.
Investor Verification Checklist
- Verify the status of the adversary proceeding filed by Lehman Brothers Special Financing Inc. against the Trust in the Southern District of New York.
- Confirm the outcome of the hearing scheduled for June 13, 2016, regarding the authorization of Extraordinary Trust Expenses.
- Review the attached Exhibit 99.1 (Trustee's Notice) for detailed terms of the petition and potential impact on Certificateholders.
- Monitor for any objections filed by parties-in-interest prior to the hearing date.