Any posts are my opinion, and should not be relied on for your investment decisions.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Sent this to TD/Schwab-
Hello TD/Schwab,
Please forward this message to your custodian. This escrow is part of the LBHI estate and currently in reorganization. They should not have been removed.
LEHMAN BROTHERS
HOLDING INC QTY #
ESCROW 525ESC711
The LBHI Estate trust currently has $100+M reserved for ongoing operations and has a reorg plan in place. Additionally, the LBHI Estate is filing quarterly with the SEC (see below).
https://www.sec.gov/cgi-bin/browse-edgar?CIK=0000806085&owner=exclude&action=getcompany&Find=Search
I also know of several other TD account holders that have not had these same escrows removed. Further, we have not received any notification from the LBHI estate that the chap 11 has been closed (at a minimum we would have received tax forms) and notification from the SDNY court.
Sincerely,
JW
The list is those who are on the mailing list.
They are getting ready to move my account to schwab and imo just thought they could delete holdings
Not a great way to start new customer relations.
I emailed them to let them know the reorg cas e is still active in chap 11
Any td holders should do the same
I emailed them to let them know the reorg cas e is still active in chap 11
Any td holders should do the same
Were you a TD customer that transferred to Schwab?
Mine are gone too. I just emailed TD client services. Recommend others do the same.
That $31B of claims against itself does protect against an ownership change
However, the absolute priority rule, 11 U.S.C. §1129(b)(2)(B)(ii), often mandates the issuance of stock in satisfaction of creditors' claims. In these circumstances, the reorganization plan will almost always create an ownership change. The Internal Revenue Code provides two types of relief to the debtor that undergoes an ownership change in a bankruptcy case: the "bankruptcy exception" set forth in §382(l)(5) and the "special valuation" rule set forth in §382(l)(6).
The "bankruptcy exception" provides that the general rule of §382 does not apply if, in a bankruptcy case, the shareholders and certain qualified creditors own at least 50 percent of the stock of the reorganized debtor.3 A qualified creditor is a creditor who receives stock in the reorganized debtor in satisfaction of debt (a) held at least 18 months prior to commencement of the bankruptcy case or (b) that arose in the ordinary course of the debtor's business and that has been held by the same creditor at all times. See 26 U.S.C. §382(l)(5)(E). Additionally, a creditor may be presumed to be a qualified creditor—even if the creditor's claim was purchased after the commencement of the case—if that creditor does not become, as a result of the ownership change, a 5 percent shareholder. See 26 C.F.R. §1.382-9(d)(3).
Unrestricted claims trading can limit the debtor's ability to confirm a plan that distributes at least 50 percent of the stock to qualified creditors, particularly if large claims are traded. To preserve the ability to fit within the §382(l)(5) bankruptcy exception, debtors typically structure anti-trading injunctions to apply to claims that could be expected to entitle the holder, under a plan, to receive approximately 5 percent of the stock in the reorganized debtor. See, e.g., Williams Communications Group Inc., Case No. 02-11957 (BRL) (Bankr. S.D.N.Y. July 24, 2002) (subjecting transfers of claims equal to or greater than $200 million to the transfer-approval procedures; $200 million was the smallest claim that could be reasonably anticipated to lead to a distribution of 5 percent of the stock in a reorganized entity); In re Service Merchandise Co. Inc., Case No. 02-11957 (GCP) (Bankr. M.D. Tenn. April 6, 2000) (subjecting holders of unsecured claims equal to or greater than 4 percent of the total estimated unsecured claims to the notification and waiting periods). If creditors who each receive less than 5 percent of the stock in the reorganized debtor own, in the aggregate, less than 50 percent of that stock, then the debtor can use the presumption created by Treasury Regulation §1.382-9(d)(3) to fit within the "bankruptcy exception," thereby sheltering NOLs from the general limitation imposed by §382.
Debtors who anticipate utilizing the "bankruptcy exception" to §382 also seek to restrict trading in equity securities prior to confirmation of a plan. Anti-trading injunctions are usually structured to prevent any 5 percent shareholder from increasing its ownership or to prevent any person from becoming a 5 percent shareholder prior to confirmation of a plan. See, e.g., In re Conseco Inc., Case No. 02-49671 (Bankr. N.D. Ill. Dec. 18, 2002); Metrocall Inc., Case No. 02-11579 (RB) (Bankr. D. Del. July 8, 2002).
If the "bankruptcy exception" does not apply (either because the requisite amount of stock was not distributed to qualified creditors or because the debtor made an election to opt-out of the bankruptcy exception, which is permitted by §382(l) (5)(H)), then §382(l)(6) provides a special valuation rule. Specifically, the value of the reorganized debtor is the lesser of (a) the value of the stock in the reorganized debtor immediately after the ownership change or (b) the value of the debtor's pre-confirmation assets. See 26 C.F.R. 1.382-9(j). As noted above, the §382(b) annual limitation is determined by applying a long-term tax-exempt rate to the value of the pre-confirmation debtor, a valuation that is typically tested immediately before the ownership change. See 382(b), (e)(1). Thus, the special valuation rule gives effect to the increase in value resulting from any surrender or cancellation of creditors' claims under a plan. This increase can alleviate the burden of an ownership change on a debtor. Creditors opposing the entry of an anti-trading injunction can argue that the special valuation rule is available to the debtor even if the safe harbor of the bankruptcy exception is not. Therefore, the argument goes, the debtor's NOLs would not be destroyed by unrestricted claims trading (as they would have been in Prudential Lines by the worthless stock deduction), but only reduced.
In addition, the special valuation rule of §382(l)(6) does not require the payment of a "toll charge," which the debtor must pay if it uses the "bankruptcy exception." Therefore, the effect of unrestricted claims trading may not be as deleterious as the debtor contends.
https://www.abi.org/abi-journal/claims-trading-injunctions-and-preservation-of-nols
Established 1998.
Established 1998.
https://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=LEHMQ
some of the CTs were never public
https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx
type in 'Lehman Brothers Holdings Capital Trust'
and you will get -
FILE NUMBER ENTITY NAME
2845077 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST I
2845081 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST II
2845082 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST III
3024540 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST IV
3890900 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST IX
3024542 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST V
3024537 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST VI
3890899 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST VII
3890897 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST VIII
3890901 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST X
3890902 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST XI
3927460 LEHMAN BROTHERS HOLDINGS CAPITAL TRUST XII
State Of Delaware
Entity Details
File Number: 2845082
Entity Name:
Entity Kind:
Residency:
Status:
Incorporation Date / Formation Date:
Entity Type:
State:
Status Date:
LEHMAN BROTHERS HOLDINGS CAPITAL TRUST III
Statutory Trust
Domestic
Voluntarily Cancelled
General
1/16/1998
DELAWARE
7/25/2017
Tax Information
Last AnnualReport Filed:
Annual Tax Assessment:
Tax Due:
Total Authorized Shares:
Registered Agent Information
Name:
Address:
City:
State:
Phone:
Country:
Postal Code:
CHASE BANK USA, NATIONAL ASSOCIATION
C/O JP MORGAN CHASE,OPS4/3RDFL ATT: INSTITUTIONAL TRUST SERVI 500 STANTON CHRISTIANA ROADNEWARK
DE 19713
5/20/2023 2:23:05PMFiling History (Last 5 Filings)
Seq Description No of Pages Filing Date Filing Time Effective Datemm/dd/yyyy mm/dd/yyyy1 Cancellation; Trust,GP,LP,LLC,RSE 3 7/25/2017 4:59 PM7/25/20172 Trust 3 1/16/1998 4:30 PM1/16/1998
State of Delaware Secretary of State and paid $20 for the report entity status Cap trust III (LEHKQ)-
https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx
Why would JPM file a cancellation in 2017? 5 years after POR
Why 2025?
PLC Administrators shall make all reasonable efforts to determine whether there are
outstanding issues in the PLC estate which are likely to require judicial determination and
shall provide a report to the Court, copied to LBHI, GP1 and DB, by 4 pm on 28 July 2023
on whether they consider such issues to be either (i) suitable for determination as part of
the hearing; or (ii) not suitable for determination as part of the hearing (and in that event,
explaining why not).
Lbhi paid ~16% of ECaps holders and 100% of other preferred post chap 11
Affiliate pref are not allowed to be paid before us. PERIOD.
LBHI and affiliates preferred and CTs have received distributions, before sr debt was paid in full
LBHI and affiliates should never have received payments on any preferred holdings. We are trusts and our trustee should have acted the second this happened.
From the prospectus-
Status of the Guarantees
The guarantee will constitute an unsecured obligation of Lehman Brothers Holdings and will rank:
•
subordinate and junior in right of payment to all other liabilities of Lehman Brothers Holdings,
•
on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings, and
•
senior to Lehman Brothers Holding's common stock.
The guarantee will not place a limitation on the amount of additional senior debt that may be incurred by Lehman Brothers Holdings.
The guarantee will constitute a guarantee of payment and not of collection (that is, the guaranteed party may institute a legal proceeding directly against Lehman Brothers Holdings to enforce its rights under the guarantee without first instituting a legal proceeding against any other person or entity). The guarantee will not be discharged except by payment of the guarantee payments in full to the extent not paid by the trust or upon distribution of the junior subordinated debt securities to the holders of the preferred securities in exchange for all such preferred securities.
Did you try instructing your broker not to remove the escrows?
They should not be able to remove them b/c they are non-transferable. Also the chapter 11 reorg is not complete
CFO/COO (was Kristine Dickson) and Chief Legal contacts removed from estate contacts on EPIQ
https://dm.epiq11.com/case/lbh/info
Your broker should have assigned you an escrow marker for your J holdings. Call them and let them know the Plan of reorg is still active
This is the joint venture w/ king street, Elliott, lbhi to recover on LBIE sub debt and LBHI pref holdings in LBIE
It does not own all of LBHI
https://document.epiq11.com/document/getdocumentbycode?docId=2440839&projectCode=LBH&source=dm
https://document.epiq11.com/document/getdocumentbycode?docId=2440840&projectCode=LBH&source=dm
Neuburger, LBHI LBIE pref holdings, ECaps, just to name a few
Good to see you falling in line and passive, while other preferred equity gets paid.
Vol 500
If they have already reserved for it, then they can likely move forward with next phase w/o any court issues. IMO
"LBHI Plan Trust Reporting
Pursuant to § 3.6(a)(i) of the Plan Trust Agreement, and the letter sent to each stockholder in
August and September of 2012, within seventy-five (75) days following the end of each calendar year or as soon as practicable thereafter, the Trustees will annually furnish to each beneficiary a separate statement setting forth the holder’s share of items of income, gain, loss, deduction, or credit, if any, for U.S. federal income tax purposes by posting on our website, at www.lehmandocket.com"
80 days right now
Possibly looking for a new CEO is underway to emerge and hunt
Here's the latest Q released
https://document.epiq11.com/document/getdocumentbycode?docId=4121594&projectCode=LBH&source=DM
Not sure what you mean by LBF, LBF is listed on the non-controlled affiliate table
Also, LBHI plan trust has stayed current with SEC 8-K for years now...
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000806085&owner=exclude&count=40
Maybe time for you to send a succinct petition to the appeals court
Lehman Brothers' brokerage
LBI not LBHI
You do understand that the ECap pref shares are subordinate to our LBHI Capital pref trust shares? Affiliate, subsidiary, or domestic our capital trust preferred shares rank senior to all global equity. Period
Only NOLs 2018 and beyond can be carried forward indefinitely
I blame LBHI for dragging this on and illegally breaking contracts