Syncora Holdings has announced that its wholly owned, New York financial guarantee insurance subsidiary, Syncora Guarantee, has reached an agreement in principle for the settlement of its sole existing claim and related litigation with Lehman Brothers Holdings and Structured Asset Securities Corporation.  

If consummated, the terms of the settlement will resolve all claims in respect of SGI's proof of claim filed onJanuary 13, 2010, against Lehman Brothers Holdings Inc. and Sasco in the United States Bankruptcy Court for the Southern District of New York, relating to the GreenPoint Mortgage Funding Trust 2006-HE1 transaction, in return for an allowed unsecured claim of $37 million in the Lehman bankruptcy estate. 

In the Notice Regarding Tenth Distribution Pursuant to The Modified Third Amended Joint Chapter 11 Plan ofLehman Brothers Holdings Inc. And Affiliated Debtors filed with the bankruptcy court on June 9, 2016, the Lehman bankruptcy estate is currently projecting cumulative payments of approximately 36 cents on the dollar to be paid on allowed unsecured claims, but that projection is subject to change. 

The settlement remains subject to final definitive documentation.  No assurances can be made that such final definitive documentation will be entered into.  If consummated, the settlement is expected to increase SHL's GAAP net income and shareholders' equity by the amount ultimately paid by the Lehman bankruptcy estate and is expected to have the same effect on SGI's statutory-basis net income and policyholders' surplus.

This settlement is separate and distinct from the U.S. Bank National Association, as Indenture Trustee v.GreenPoint Mortgage Funding, Inc. action, with respect to, among other things, alleged breaches of representations and warranties by GreenPoint, which remains pending in state court.