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In November 2023, the Court issued its decision in favor of ECAPS, finding that statutory interest on ECAPS’s subordinated notes claims should be paid before principal on LBHI’s subordinated debt claim.
In January 2024, LBHI filed a request to appeal this decision with the UK Court of Appeal. In April 2024, the UK Court of Appeal issued an order accepting LBHI’s request for appeal. The hearing is scheduled for October 2nd and 3rd, 2024.
>>It is not the court decision unless if management requested it.
And whose decision is it to allow or deny it? Lol
>>POR TO CLOSE ON 2025 OR AFTER THE 29th DISTRO
December 2025 most likely lol
It may even get extended if the courts deem it necessary
Why yall always give toogood the shit and clown emojis? 🤣😂😂😂😂
Told yall 2025 lol
If you are on windows press winKEY+shift+S at the same time and drag the cursor to take the screenshot
If my memory serves me right then this means the ECAPS 1-3 won’t receive the cash they seeked from this.
I think ECAPS 1-3 had 2 payment routes, not sure, Lehman is a Goliath and it’s hard to remember every detail.
Ehhhh no free search options for st Patrick’s day? Come on ihub!
>>
Trups has its own prospectus to be followed.
>>
But there is even no asset to be distributed on its level.
But they have parity with the CT’s and are in a class above us? (10A)
ECAPS 4-5 are LBHI guaranteed
So how is what I said too technical 🤣
By exchange the subordinate debentures for preferred stock
Less debt on their balance sheets
Not really, they eliminate the debt and everyone is happy
In that scenario everyone gets what they want LEGALLY and by the book
I am now having the thought that, even if LBHI discharges its debt and does not have to pay CTs (everyone’s biggest fear right?) that the capital trust can still cause the transfer of the subordinate debentures to the holders of the preferred securities right? “But then we will hold debt that LBHI does not have to pay! We would be holding zombie debt” well because of the ECAPS 4-5 prospectus which state ECAPS are supposed to receive preferred stock, AND since we know Lehman wants to issue the ECAPS the preferred stock, and because ECAPS 4-5 are in parity with the CT’s and are in class 10A, the subordinate Debentures we will receive as per the CT prospectus would then be given back to Lehman in exchange for the preferred stock we would receive due to the parity clause of ECAPS 4-5. The debentures are an asset and us exchanging them would be an asset contribution to Lehman. Please note that the discharge extinguishes Lehman’s obligation to pay a debt, it does not extinguish a debt nor extinguish a prospectus.
A debt for equity swap
>>
Not a loophole Swiss
Interesting.🤔
https://casetext.com/case/in-re-lehman-bros-holdings-inc-19
Pursuant to the terms of the Amended Charter and the Amended By-Laws, LBHI is prohibited from issuing any non-voting capital stock except the one share of common stock to be held by the Plan Trust.
Specifically, the fourth provision of the Amended Charter provides that "[LBHI] shall not be authorized to issue any non-voting capital stock of any class, series or other designation to the extent prohibited by section 1123(a) (6) of the Bankruptcy Code....
138 See Amended Charter at 2.
Additionally, the Amended By-Laws provide that "nless otherwise required by law, no capital stock of the Corporation shall be issuable or transferable to any person other than the Plan Trust (as defined in the Plan)." See Amended By-Laws, Article VI, $ 1.“
Glad I’m not the only one who caught that 😂
This link is from
09/15/2008
That’s the date Lehman went bankrupt. Of course LBIE membership got suspended. That’s like a company trading on the nasdaq and getting suspended because of a bankruptcy. That’s obvious at the time no?
>>
Shortly after the end of the Reporting Period, the
loan notes issued by LBH to LP I, LP II and LP III in
2005 and 2006 were listed and admitted to trading
on the Vienna Stock Exchange, with the first trading
day being 12 October 2023.
Had to bring AI man back 🤣
>>“What did 1-3 end up getting in cash?”
This is the last I read on it, I haven’t brushed up since:
https://www.bloomberg.com/news/articles/2023-11-29/deutsche-bank-scores-big-win-on-lehman-brothers-ecaps-debts
And what was the stock worth?
>>
Why should we debate "pari-passu".
It means on parity which is exactly what the prospectus says. On parity with what? The most senior preferreds. What are the most senior preferreds? The CTs. The CTS are the most senior preferred.
>>
ECAPs said no thanks to that offer. They felt they would receive more under LBIE's subordinated position.
On January 20, 2009, the General Partner sent a letter to LBHI: (a) notifying LBHI that a Trigger Event occurred as of the Petition Date; (b) detailing the General Partner’s multiple previous oral and written requests to LBHI’s advisors to issue the Substituted Preferred Stock; (c) noting that the General Partner “must advise the holders of the Preferred Securities as soon as possible of the status of the Preferred Securities and whether Substituted Preferred Stock will be issued”; and (d) urgently requesting a response to the General Partner’s request for LBHI to issue Substituted Preferred Stock. See McKane Decl., Ex. 3. A month later, on February 24, 2009, LBHI sent a response letter to the General Partner, stating that “we cannot say at this time whether Lehman Brothers Holdings Inc. will be able to issue Substituted Preferred Stock, nor give you any indication as to when we will be in a position to determine the same.” See McKane Decl., Ex. 4.5
Hilarious that you quoted this but this doesn’t include the LP V language. Did you intentionally doctor the information or is it just bad due diligence? 🥶🥶🥶😂😂😂
LBHI Subordinated Class 10A Notes
a. The Eighth Supplemental Indenture
The Indenture, dated as of February 1, 1996, as amended by the First
Supplemental Indenture, dated as of February 1, 1996 (together, the "Indenture") provides that:
The Company agrees, and each Holder of the Securities and related coupons by his acceptance thereof likewise agrees, that the payment of the principal of (and premium, if any) and interest, if any, on the Securities and related coupons is subordinated, to the extent and in the manner provided in this Article, to the prior payment in full when due of the principal of (and premium, if any) and interest, if any, on all Senior Debt.
See Indenture at §1401.
The Eighth Supplemental Indenture, dated as of August 19, 2005, provides that
"Senior Debt" means:
(1) the principal, premium, if any, and interest in respect of (A) indebtedness for money borrowed by the Company and (B) indebtedness evidenced by securities, notes, debentures, bonds or other similar instruments issued by the Company;
(2) all of the Company's capitalized lease obligations;
(3) all of the Company's obligations representing the deferred purchase price of property; and
(4) all deferrals, renewals, extensions and refundings of obligations of the type referred to in clauses (1) through (3);
but Senior Debt does not include:
(a) any indebtedness that by its terms is subordinated to, or ranks on an equal basis with, subordinated debt securities; and
10-5
(b) indebtedness for goods or materials purchased in the ordinary course of business or for services obtained in the ordinary course of business or indebtedness consisting of trade payables.
See Eighth Supplemental Indenture at §1.7 (amending §1401 of the Indenture by replacing only the second paragraph in its entirety).
b. Series 5065, Series 6222, Series EB 17 and Series EB 18
The (1) Fixed/Floating Rate Subordinated Notes due 2016 Series 5065, issued
pursuant to a final term sheet, dated as of September 26, 2006, under the EuroMedium-Term Note Program; (2) Floating Rate Subordinated Notes due 2037 Series EB 17, issued pursuant to a final term sheet, dated as of January 23, 2007, under the Euro Medium-Term Note Program;
(3) Fixed/Floating Rate Subordinated Notes due 2019 Series 6222, issued pursuant to the final term sheet, dated as of February 14, 2007, under the Euro Medium-Term Note Program; and (4) Fixed Rate Subordinated Notes Series EB 18, issued by LBHI on June 1, 2007, as described in the Lehman Brothers UK Capital Funding V LP Prospectus, dated as of May 30, 2007, are all subject to the provisions of the Amended and Restated Fiscal Agency Agreement, dated August 9, 2006 (the "Fiscal Agency Agreement"). The Fiscal Agency Agreement provides, in part, that:
Stocjock, LP UK Iv and the Lehman CTs is like apple and oranges. Completely different Lehman bankruptcy in Europe with a different pool of assets. Lehman US guaranteed the CTs, Lehman UK guaranteed the LPs in the UK. No legal link.
>>
Joester??
LOL! What does oester mean? 😂
ECAPS 4-5 class 10A proof in black and white:
https://www.wilmingtontrust.com/content/dam/wtb-web/wtb-migration/lehman-bondholders/plans-and-disclosure-statements/debtors/Disclosure_Statement_Debtors_Third_Amended_Plan_083011.pdf
LBHI Subordinated Class 10A Notes
a. The Eighth Supplemental Indenture
The Indenture, dated as of February 1, 1996, as amended by the First
Supplemental Indenture, dated as of February 1, 1996 (together, the "Indenture") provides that:
The Company agrees, and each Holder of the Securities and related coupons by his acceptance thereof likewise agrees, that the payment of the principal of (and premium, if any) and interest, if any, on the Securities and related coupons is subordinated, to the extent and in the manner provided in this Article, to the prior payment in full when due of the principal of (and premium, if any) and interest, if any, on all Senior Debt.
See Indenture at §1401.
The Eighth Supplemental Indenture, dated as of August 19, 2005, provides that
"Senior Debt" means:
(1) the principal, premium, if any, and interest in respect of (A) indebtedness for money borrowed by the Company and (B) indebtedness evidenced by securities, notes, debentures, bonds or other similar instruments issued by the Company;
(2) all of the Company's capitalized lease obligations;
(3) all of the Company's obligations representing the deferred purchase price of property; and
(4) all deferrals, renewals, extensions and refundings of obligations of the type referred to in clauses (1) through (3);
but Senior Debt does not include:
(a) any indebtedness that by its terms is subordinated to, or ranks on an equal basis with, subordinated debt securities; and
10-5
(b) indebtedness for goods or materials purchased in the ordinary course of business or for services obtained in the ordinary course of business or indebtedness consisting of trade payables.
See Eighth Supplemental Indenture at §1.7 (amending §1401 of the Indenture by replacing only the second paragraph in its entirety).
b. Series 5065, Series 6222, Series EB 17 and Series EB 18
The (1) Fixed/Floating Rate Subordinated Notes due 2016 Series 5065, issued
pursuant to a final term sheet, dated as of September 26, 2006, under the EuroMedium-Term Note Program; (2) Floating Rate Subordinated Notes due 2037 Series EB 17, issued pursuant to a final term sheet, dated as of January 23, 2007, under the Euro Medium-Term Note Program;
(3) Fixed/Floating Rate Subordinated Notes due 2019 Series 6222, issued pursuant to the final term sheet, dated as of February 14, 2007, under the Euro Medium-Term Note Program; and (4) Fixed Rate Subordinated Notes Series EB 18, issued by LBHI on June 1, 2007, as described in the Lehman Brothers UK Capital Funding V LP Prospectus, dated as of May 30, 2007, are all subject to the provisions of the Amended and Restated Fiscal Agency Agreement, dated August 9, 2006 (the "Fiscal Agency Agreement"). The Fiscal Agency Agreement provides, in part, that:
Dot connecting?
to an entity designated by the LBT Trustees to be incorporated under Dutch law (the "Entity"). The Entity shall not own any interest, directly or indirectly, in any Debtor or Lehman Tax Affiliate (other than LBT), nor shall any Debtor or Lehman Tax Affiliate be a direct or indirect beneficiary or owner of the Entity. The LBT Trustees shall cause the Entity to be formed prior to
the date of the transfer of the LBT shares“
Although LBHI has undertaken that, in the event that the Preferred Securities are substituted by depositary shares representing Substituted Preferred Stock, LBHI will apply for a listing for the Substituted Preferred Stock outside of the United States,
The LBT Trustees shall cause the Entity to be formed prior to
the date of the transfer of the LBT shares“
15.2
Issuance of New Securities.
In the discretion of the Plan Administrator, each
Debtor or Debtor Controlled-Entity (a) may form and transfer certain assets of the Debtors and/or Debtor Controlled Entities to new (or utilize existing) entities, including, without limitation, one or more separately managed partnerships, REITs or other investment vehicles, to hold certain real estate or other assets of the Debtors and/or Debtor-Controlled Entities and, (b) may, in connection therewith, issue New Securities for Distribution under the Plan. In the event that the Plan Administrator determines to issue New Securities, each holder of Allowed Claims or Equity Interests against a Debtor that contributed assets to the entity issuing New Securities shall receive the relevant New Securities as Distributions in accordance with the Plan. The New Securities shall be valued as of the date of the issuance and the holders of Allowed Claims or Equity Interests receiving such New Securities shall be deemed satisfied to the extent of the value of the New Securities.
In the event that the Plan Administrator determines to issue New Securities, each holder of Allowed Claims or Equity Interests against a Debtor that contributed assets to the entity issuing New Securities shall receive the relevant New Securities as Distributions in accordance with the Plan.
LB GP No. 1 Ltd. is the General Partner for five Partnerships formed in 2006 to fund, on a subordinated basis, regulatory capital to be made available to LBH Plc and LBHI:
(a) Lehman Brothers UK Capital Funding LP (*LP F"); (b) Lehman Brothers UK Capital Funding Il LP ("LP IF'); (C) Lehman Brothers UK Capital Funding III LP ("LP I);
(d) Lehman Brothers UK Capital Funding IV LP ("LP IV"); and (e) Lehman Brothers UK Capital Funding V LP ("LP V"). The Partnerships are governed by their respective Partnership Agreements.
JOEYYYYYY
>>
These will be newly issued preferreds post bankruptcy.
That does not give the CTs parity
SLIMMM🔥🔥🔥
This confirms the j shares are alive!
As per the ECAPS prospectus:
Substitution
If a Trigger Event occurs and is continuing, the General Partner will, provided that (if required at such time) no relevant Supervisory Authority has objected, take all reasonable steps to cause the substitution of the Preferred Securities with depositary shares representing fully paid non-cumulative preferred stock issued directly by Lehman Brothers Holdings Inc. ("LBHI"). A Trigger Event shall occur (i) if LBHI is placed into bankruptcy, reorganisation, conservatorship or receivership, (ii) if following any time when LBHI becomes
subject to Relevant Rules, LBHI has capital adequacy levels which are less than the minimum capital adequacy levels which are imposed by the relevant Supervisory Authority or (iti) if, following any time when LBHI become subject to Relevant Rules, the relevant Supervisory Authority in its sole discretion, informs LBHI that it will not meet its minimum capital requirement in the near term.
Although LBHI has undertaken that, in the event that the Preferred Securities are substituted by depositary shares representing Substituted Preferred Stock, LBHI will apply for a listing for the Substituted Preferred Stock outside of the United States, there can be no assurance that a recognised stock exchange will agree to list any such Substituted Preferred Stock. In addition, the tax treatment for holders of Substituted Preferred Stock may be different from that for Holders of the Preferred Securities.
2025 sory
I tried to tell yall it won’t end until 2025 years ago. The lawsuits are what’s dragging this
A debtor can’t even enter a final decree (closing the bankruptcy) if the lawsuits impact the debtor directly.
The #1 sign we will know this is ending is through LBT. They will finish up before LBHI.
Good thing 😂
Looks like toogood knew something after-all
https://www.thetaxadviser.com/issues/2023/apr/a-primer-on-cancellation-of-debt-income-and-exclusions.html
The bankruptcy and insolvency exclusions provided in Secs. 108(a)(1)(A) and (B) operate similarly to exclude COD income. However, it is critical for a tax professional to understand several distinctions between them. Consider the following example:
Example 1: Corporation D undergoes a debt workout in which $500 million of debt is discharged in exchange for (1) new debt of $200 million, (2) cash of $50 million raised from new senior creditors, and (3) preferred equity in Corporation D of $150 million. Corporation D reports $100 million of COD income in the transaction.
Where’s the ct fraud findings lawsuit at?