Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 2015, 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 acting 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 specific 10-K form. Consequently, the document does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity for the Trust itself.
Instead, the filing incorporates by reference the Trustee's Distribution Statements filed on Form 8-K for the period. Distributions to certificateholders were made on:
- February 17, 2015 (Filed 02/27/2015)
- August 17, 2015 (Filed 08/21/2015)
Specific dollar amounts for these distributions are not detailed in the text of this 10-K summary.
Material Changes and Legal Proceedings
While the filing lists "None" under Item 3 (Legal Proceedings), the Introductory Note discloses a significant ongoing legal matter that materially affects the Trust:
- Mediation and Litigation: 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.
- Swap Transaction Dispute: 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.
- Impact on Assets: If an Early Termination Payment or judgment is payable by the Trust to LBSF, it may need to be satisfied by distributing a portion of the underlying securities or their proceeds to LBSF.
- Trustee Fees: The Trustee intends to file a proceeding to use trust property to pay extraordinary fees and expenses incurred in connection with the LBHI bankruptcy and the defense of the litigation. These fees must be paid prior to any distributions to certificateholders.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, outlook, or management commentary regarding future performance, as the Trust is a passive vehicle holding underlying securities.
Risks and Contingencies:
- Asset Depletion Risk: There is a risk that underlying securities may be used to satisfy claims from LBSF related to the swap transaction dispute.
- Expense Risk: Trust assets may be used to pay extraordinary legal and administrative fees related to the LBHI bankruptcy proceedings before distributions are made to investors.
- Issuer Risk: The Trust's performance is entirely dependent on the underlying securities issued by Goldman Sachs Capital I. The Depositor and Trustee have not verified the accuracy of reports filed by the underlying issuer.
Investor Verification Checklist
- Verify the specific dollar amounts of distributions made on February 17, 2015, and August 17, 2015, by reviewing the referenced Form 8-K filings.
- Monitor the status of the mediation and litigation between LBSF and the Trust regarding the swap transaction to assess the risk of asset diversion.
- Review the Trustee's filings for updates on extraordinary fees and expenses being deducted from the Trust prior to investor distributions.
- Check periodic reports from The Goldman Sachs Group, Inc. (File No. 001-14965) for information on the underlying securities held by the Trust.