March 2010 Monthly Operating Report

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UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORKIn re: Chapter 11 Case No.

Lehman Brothers Holdings Inc., et al., 08-13555

Debtors.

MONTHLY OPERATING REPORTMARCH 2010

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTSSCHEDULE OF PROFESSIONAL FEE AND EXPENSE DISBURSEMENTS

SCHEDULE OF HEDGING TRANSACTIONS

DEBTORS ADDRESS: LEHMAN BROTHERS HOLDINGS INC.

c/o WILLIAM J. FOX1271 AVENUE OF THE AMERICAS35th FLOORNEW YORK, NY 10020

DEBTORS ATTORNEYS: WEIL, GOTSHAL & MANGES LLPc/o SHAI WAISMAN767 FIFTH AVENUENEW YORK, NY 10153

REPORT PREPARER: LEHMAN BROTHERS HOLDINGS INC., A DEBTOR IN POSSESSION

THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTOR

The undersigned, having reviewed the attached report and being familiar with the Debtors financial affairs, verifies underpenalty of perjury, that the information contained therein is complete, accurate and truthful to the best of my knowledge.

Lehman Brothers Holdings Inc.

Date: April 21, 2010 By: /s/ William J. FoxWilliam J. Fox

Executive Vice President

Indicate if this is an amended statement by checking here: AMENDED STATEMENT


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TABLE OF CONTENTS

Schedule of Debtors...................................................................................................................................................................... 3Lehman Brothers Holdings Inc. (LBHI) and Other Debtors and Other Controlled Subsidiaries ........... .......... ........... .......... ....

Basis of Presentation Schedule of Cash Receipts and Disbursements .......... ........... .......... ........... ........... .......... ........... ....... 4Schedule of Cash Receipts and Disbursements March 2010 .......... ........... .......... ........... ........... .......... ........... .......... ........... 5

Schedule of Cash Receipts and Disbursements January 1 March 31, 2010 .......... ........... ........... .......... ........... .......... .... 7LBHI.............................................................................................................................................................................................

Basis of Presentation Schedule of Professional Fee and Expense Disbursements............ .......... ........... .......... ........... ......... 9Schedule of Professional Fee and Expense Disbursements .......... ........... .......... ........... .......... ........... ........... .......... ........... ....... 10

LBHI.............................................................................................................................................................................................

Quarterly Hedging Transactions Update .......... ........... .......... ........... .......... ........... .......... ........... ........... .......... ........... .......... .... 11Schedule of Hedging Transactions as of March 31, 2010 ........... .......... ........... .......... ........... .......... ........... .......... ........... ......... 12


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SCHEDULE OF DEBTORS

The following entities have filed for bankruptcy in the Southern District of New York:

Case No. Date Filed

Lead Debtor:Lehman Brothers Holdings Inc. (LBHI)............ ........... .......... ........... .......... ........... .......... .... 08-13555 9/15/2008

Related Debtors:LB 745 LLC............................................................................................................................. 08-13600 9/16/2008PAMI Statler Arms LLC(1) ..................................................................................................... 08-13664 9/23/2008Lehman Brothers Commodity Services Inc. (LBCS) .......... .......... ........... .......... ........... ....... 08-13885 10/3/2008Lehman Brothers Special Financing Inc. (LBSF) .......... .......... ........... .......... ........... .......... .. 08-13888 10/3/2008Lehman Brothers OTC Derivatives Inc. (LOTC).............. ........... .......... ........... .......... ......... 08-13893 10/3/2008Lehman Brothers Derivative Products Inc. (LBDP).......... ........... .......... ........... .......... ......... 08-13899 10/5/2008Lehman Commercial Paper Inc. (LCPI)................ .......... ........... .......... ........... .......... ........... 08-13900 10/5/2008Lehman Brothers Commercial Corporation (LBCC) .......... .......... ........... .......... ........... ....... 08-13901 10/5/2008Lehman Brothers Financial Products Inc.(LBFP) .......... .......... ........... .......... ........... .......... .. 08-13902 10/5/2008Lehman Scottish Finance L.P. ................................................................................................. 08-13904 10/5/2008CES Aviation LLC................................................................................................................... 08-13905 10/5/2008CES Aviation V LLC............................................................................................................... 08-13906 10/5/2008CES Aviation IX LLC ............................................................................................................. 08-13907 10/5/2008East Dover Limited.................................................................................................................. 08-13908 10/5/2008Luxembourg Residential Properties Loan Finance S.a.r.l............ ........... .......... ........... .......... .. 09-10108 1/7/2009BNC Mortgage LLC ................................................................................................................ 09-10137 1/9/2009LB Rose Ranch LLC................................................................................................................ 09-10560 2/9/2009Structured Asset Securities Corporation .......... ........... .......... ........... .......... ........... .......... ......... 09-10558 2/9/2009LB 2080 Kalakaua Owners LLC ............................................................................................. 09-12516 4/23/2009Merit LLC................................................................................................................................ 09-17331 12/14/2009LB Somerset LLC.................................................................................................................... 09-17503 12/22/2009LB Preferred Somerset LLC .................................................................................................... 09-17505 12/22/2009

(1) On May 26, 2009, a motion was filed on behalf of Lehman Brothers Holdings Inc. seeking entry of an order pursuant to

Section 1112(b) of the Bankruptcy Code to dismiss the Chapter 11 Case of PAMI Statler Arms LLC, with a hearing to be held onJune 24, 2009. On June 19, 2009, the motion was adjourned without a date for a continuation hearing.

The Chapter 11 case of Fundo de Investimento Multimercado Credito Privado Navigator Investimento No Exterior (Case No: 08-13903) has been dismissed.

The Chapter 11 case of Lehman Brothers Finance SA (Case No: 08-13887) has been dismissed.


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LEHMAN BROTHERS HOLDINGS INC., (LBHI), AND OTHER DEBTORS AND OTHER CONTROLLED ENTITIES

BASIS OF PRESENTATIONSCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

MARCH 1, 2010 TO MARCH 31, 2010AND

JANUARY 1, 2010 TO MARCH 31, 2010

The information and data included in this Monthly Operating Report (MOR) are derived from sources available to Lehman BrothersHoldings Inc. (LBHI) and its Controlled Entities (collectively, the Company). The term Controlled Entities refers to thoseentities that are directly or indirectly controlled by LBHI, and excludes, among other things, those entities that are under separateadministrations in the United States or abroad, including Lehman Brothers Inc., which is the subject of proceedings under the SecurityInvestor Protection Act. LBHI and certain of its Controlled Entities have filed for protection under Chapter 11 of the BankruptcyCode, and those entities are referred to herein as the Debtors. The Debtors chapter 11 cases have been consolidated for proceduralpurposes only and are being jointly administered pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure. TheDebtors have prepared this MOR, as required by the Office of the United States Trustee, based on the information available to TheDebtors at this time, but note that such information may be incomplete and may be materially deficient in certain respects. This MORis not meant to be relied upon as a complete description of the Debtors, their business, condition (financial or otherwise), results ofoperations, prospects, assets or liabilities. The Debtors reserve all rights to revise this report.

1. This MOR is not prepared in accordance with U.S. generally accepted accounting principles (GAAP). This MOR should beread in conjunction with the financial statements and accompanying notes in the Companys annual and quarterly reports thatwere filed with the United States Securities and Exchange Commission.

2. This MOR is not audited and will not be subject to audit or review by the Companys external auditors at any time in thefuture.

3. The beginning and ending balances include cash in demand-deposit accounts (DDA), money-market funds (MMF), treasurybills, and other investments.

4. Beginning and ending cash balances are based on preliminary closing numbers and are subject to adjustment.

5. Beginning and ending cash balances exclude cash that has been posted as collateral for hedging activity.

6. Beginning and ending cash balances exclude cash related to LBHIs wholly-owned indirect subsidiaries Aurora Bank FSB(formerly known as Lehman Brothers Bank FSB), Woodlands Commercial Bank (formerly known as Lehman BrothersCommercial Bank), Lehman Brothers Trust Company N.A., and Lehman Brothers Trust Company of Delaware.

7. Cash pledged on, or prior to, September 15, 2008 by the Company in connection with certain documents executed by theCompany and various financial institutions has been excluded from this report.

8. Intercompany transfers between Lehman entities are listed as disbursements for the paying entity and receipts for thereceiving entity.

9. Opening cash on 1/1/10 has been restated from previously filed MORs.


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LEHMAN BROTHERS HOLDINGS INC. (LBHI)

BASIS OF PRESENTATIONSCHEDULE OF PROFESSIONAL FEE AND EXPENSE DISBURSEMENTS

DATED FROM FILING DATE TO MARCH 31, 2010

The information and data included in this Monthly Operating Report (MOR) are derived from sources available to LehmanBrothers Holdings Inc. (LBHI) and its Controlled Entities (collectively, the Company). The term Controlled Entitiesrefers to those entities that are directly or indirectly controlled by LBHI, and excludes, among other things, those entities thatare under separate administrations in the United States or abroad, including Lehman Brothers Inc., which is the subject ofproceedings under the Security Investor Protection Act. LBHI and certain of its Controlled Entities have filed for protectionunder Chapter 11 of the Bankruptcy Code, and those entities are referred to herein as the Debtors. The Debtors chapter 11cases have been consolidated for procedural purposes only and are being jointly administered pursuant to Rule 1015(b) of theFederal Rules of Bankruptcy Procedure. The Debtors have prepared this MOR, as required by the Office of the United StatesTrustee, based on the information available to The Debtors at this time, but note that such information may be incomplete andmay be materially deficient in certain respects. This MOR is not meant to be relied upon as a complete description of theDebtors, their business, condition (financial or otherwise), results of operations, prospects, assets or liabilities. The Debtorsreserve all rights to revise this report.

1. This MOR is not prepared in accordance with U.S. generally accepted accounting principles (GAAP). This MORshould be read in conjunction with the financial statements and accompanying notes in the Companys annual andquarterly reports that were filed with the United States Securities and Exchange Commission.

2. This MOR is not audited and will not be subject to audit or review by the Companys external auditors at any timein the future.

3. The professional fee disbursements presented in this report reflect the date of actual cash payments to professionalservice providers. The Debtors have incurred additional professional fee expenses during the reporting period thatwill be reflected in future MORs, as cash payments are made to providers.


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LEHMAN BROTHERS HOLDINGS INC., ET AL.

QUARTERLY HEDGING TRANSACTIONS UPDATEAS OF MARCH 31, 2010

The information and data included in this report are derived from sources available to Lehman Brothers Holdings Inc.(LBHI) and its Controlled Entities (collectively, the Company). The term Controlled Entities refers to those entities

that are directly or indirectly controlled by LBHI, and excludes, among other things, those entities that are under separateadministrations in the United States or abroad, including Lehman Brothers Inc., which is the subject of proceedings under theSecurities Investor Protection Act. LBHI and certain of its Controlled Entities have filed for protection under Chapter 11 ofthe Bankruptcy Code, and those entities are referred to herein as the Debtors. The Debtors Chapter 11 cases have beenconsolidated for procedural purposes only and are being jointly administered pursuant to Rule 1015(b) of the FederalRules of Bankruptcy Procedure (the Bankruptcy Rules).

On March 11, 2009, the United States Court for the Southern District of New York overseeing the Debtors Chapter 11 cases(the Court) entered an Order Pursuant to Sections 105 and 364 of the Bankruptcy Code Authorizing the Debtors to GrantFirst Priority Liens in Cash Collateral Posted in Connection With the Hedging Transactions the Debtors Enter Into ThroughCertain Futures and Prime Brokerage Account [Docket No. 3047] (the Derivatives Hedging Order).

On July 16, 2009 the Court entered a separate Order Pursuant to Sections 105 and 364 of the Bankruptcy Code Authorizingthe Debtors to Grant First Priority Liens in Collateral Posted in Connection With the Hedging Transactions [Docket

No. 4423] (the Residential Loan Order).

Terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Derivatives Hedging Order orthe Residential Loan Order, as the case may be.

The Debtors have prepared this Quarterly Hedging Transactions Update, as required by the Derivatives Hedging Order, basedon the information available to the Debtors at this time, but note that such information is partially based on market pricingwhich is subject to day-to-day fluctuations. The Debtors reserve all rights to revise this report.

Derivatives Hedging Order. Between the entry of the Derivatives Hedging Order and March 31, 2010 (the Report Date),the Debtors have proposed 12 Hedging Transactions to the Hedging Transactions Committee. As of the Report Date, theDebtors had executed all 12 Hedging Transactions and the current value of collateral posted approximates $286.6 million.The Open Derivative Positions correspond to 77 non-terminated derivative contracts with an estimated recovery value as of

the Report Date equal to $749 million. The expected recovery amounts are determined using various models, data sources,and certain assumptions regarding contract provisions. The Company expects to adjust the amounts recorded for the OpenDerivatives Positions in the future; such adjustments (including write-downs and write-offs) may be material. For furtherdescription regarding derivative recovery values, please refer to the November 2009 Monthly Operating Report filed onDecember 14, 2009.

As of the Report Date, the Hedging Transactions were allocated to the individual Debtors as set forth on the following page.

Residential Loan Order. Between the entry of the Residential Loan Order and the Report Date, there were no ResidentialHedging Transactions.


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Lehman Brothers Holdings Inc.As of March 31, 2010Derivatives Hedging OrderQuarterly Hedging Report

Debtor

Value of Collateral

Posted for HedgingTransactions (a)

Estimated Recovery

Value of ReceivablesBeing Hedged

Lehman Brothers Special Financing Inc. (LBSF) .......... .......... .... $ 275,800,000 $ 737,000,000Lehman Brothers Financial Products (LBFP) .......... ........... ......... 10,800,000 12,000,000

Total (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 286,600,000 $ 749,000,000

(a) Value of collateral represents cash collateral posted, net of any gains or losses on hedging transactions. This presentationdiffers from disclosure in previously filed quarterly hedging updates where only the total amount of cash posted wasreported.

(b) Separately, on January 14, 2010, the Court entered an Order Granting LBHI's Motion for Authorization, Pursuant toSections 105, 363 and 364 of the Bankruptcy Code, To Sell Certain Asset Backed-Securities and Related Relief, whichauthorized the Company to enter into hedging transactions to hedge against the loss of value from fluctuations in foreignexchange rates, as set out below.

Debtor

Value of Collateral

Posted for Hedging

Transactions

Estimated Recovery

Value of Receivables

Being Hedged

Lehman Brothers Holdings Inc. (LBHI) .......... .......... ........... ....... $ 12,000,000 $ 178,000,000

Total................ ........... .......... ........... .......... ........... .......... ........... ....... $ 12,000,000 $ 178,000,000

March 2010 Monthly Operating Report

Documents

Transcript of March 2010 Monthly Operating Report