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This is under the "NOTICE OF DEALINES FOR FILING PROOFS OF CLAIM" on the Leman website...read into it what you will.
Number 2.
WHO NEED NOT FILE A PROOF OF CLAIM
You need not file a Proof of Claim if:
(1) Your claim is listed on the Schedules and (i) is not described as “disputed,” “contingent,” or “unliquidated,” and (ii) you do not dispute the amount, priority or nature of the claim set forth in the Schedules;
(2) Your claim has been paid in full by the Debtors;
(3) You hold an interest in the Debtors, which interest is based exclusively upon the ownership of common or preferred stock, membership interests, partnership interests, or warrants or rights to purchase, sell or subscribe to such a security or interest; provided, however, that interest holders who wish to assert claims (as opposed to ownership interests) against the Debtors that arise out of or relate to the ownership or purchase of an interest, including claims arising out of or relating to the sale, issuance, or distribution of the interest, must file Proofs of Claim on or before the Bar Date, unless another exception identified herein applies;
Enjoy,
Coach T
This is under the "NOTICE OF DEALINES FOR FILING PROOFS OF CLAIM" on the Leman website...read into it what you will.
Number 2.
WHO NEED NOT FILE A PROOF OF CLAIM
You need not file a Proof of Claim if:
(1) Your claim is listed on the Schedules and (i) is not described as “disputed,” “contingent,” or “unliquidated,” and (ii) you do not dispute the amount, priority or nature of the claim set forth in the Schedules;
(2) Your claim has been paid in full by the Debtors;
(3) You hold an interest in the Debtors, which interest is based exclusively upon the ownership of common or preferred stock, membership interests, partnership interests, or warrants or rights to purchase, sell or subscribe to such a security or interest; provided, however, that interest holders who wish to assert claims (as opposed to ownership interests) against the Debtors that arise out of or relate to the ownership or purchase of an interest, including claims arising out of or relating to the sale, issuance, or distribution of the interest, must file Proofs of Claim on or before the Bar Date, unless another exception identified herein applies;
Enjoy,
Coach T
This is under the "NOTICE OF DEALINES FOR FILING PROOFS OF CLAIM" on the Leman website...read into it what you will.
Number 2.
WHO NEED NOT FILE A PROOF OF CLAIM
You need not file a Proof of Claim if:
(1) Your claim is listed on the Schedules and (i) is not described as “disputed,” “contingent,” or “unliquidated,” and (ii) you do not dispute the amount, priority or nature of the claim set forth in the Schedules;
(2) Your claim has been paid in full by the Debtors;
(3) You hold an interest in the Debtors, which interest is based exclusively upon the ownership of common or preferred stock, membership interests, partnership interests, or warrants or rights to purchase, sell or subscribe to such a security or interest; provided, however, that interest holders who wish to assert claims (as opposed to ownership interests) against the Debtors that arise out of or relate to the ownership or purchase of an interest, including claims arising out of or relating to the sale, issuance, or distribution of the interest, must file Proofs of Claim on or before the Bar Date, unless another exception identified herein applies;
Enjoy,
Coach T
There is simply not enough information for anyone to make a decision on. No one knows what claims will be...recovery rates on intercompany loans, LBHI NET intercompany receivables, JPM-B of A-Barclay's info, LBI outcome, derivatives, and Real Estate, etc.
Next balance sheet will be released in Mid August and should give values as of 12-31-08.
Bonds are trading today between $.16-$.18 slowly moving up.
Enjoy,
Coach T
Mortgage Bonds Jump! (Part 2)
Beginning the PPIP
The U.S. announced July 8 that the PPIP would begin with nine managers raising as much as $10 billion, and receiving as much as $30 billion in taxpayer capital and loans to buy mortgage bonds originally rated AAA.
The rally in commercial-mortgage-backed securities centered on bonds probably eligible for Fed financing under the CMBS TALF begun last week with $669 million of loan requests. So-called A4 securities likely ineligible for TALF because of lower than AAA ratings or other issues have risen to between 70 cent and 80 cents, from 68 cents to 78 cents, in two weeks, Citigroup said.
To contact the reporter on this story: Jody Shenn in New York at jshenn@bloomberg.net or Sarah Mulholland in New York at smulholland3@bloomberg.net
Enjoy,
Coach T
Mortgage Bonds Jump! (Part 1)
July 20 (Bloomberg) -- Residential- and commercial-mortgage securities jumped last week as traders speculated that U.S. government programs would create higher prices.
The most-senior “non-agency” bonds backed by home loans generally rose 2 cents or 3 cents on the dollar, climbing for a second week on optimism for the Treasury’s Public-Private Investment Program, according to a Barclays Capital report. Some commercial-mortgage bonds probably eligible for the Federal Reserve’s Term Asset-Backed Securities Lending Facility rose to between 90 cents and 97 cents on the dollar, from between 77 cents and 84 cents two weeks ago, Citigroup Inc. said.
For home-loan bonds, analysts at Morgan Stanley and Citigroup said values would probably rise further, particularly for lower-priced debt such as securities of sub-prime and option adjustable-rate mortgages, as the $40 billion PPIP allows more investors to again use borrowed money to boost returns and creates additional demand. Barclays and JPMorgan Chase & Co. analysts cautioned that the rally may be undermined by the weak employment and housing markets, and the government’s push to avert foreclosures by reworking loans.
“The bid is purely technical, and if modification risk starts to be priced in more aggressively, any rally may be short-lived,” JPMorgan analysts in New York led by John Sim wrote in a July 17 report.
Typical prices for super-senior option ARM securities rose 2 cents on the dollar last week, while such securities composed of prime-jumbo loans climbed 2 cents to 80 cents, according to Barclays. Option ARMs allow borrowers to pay less than the interest they owe, with the difference tacked onto their balances. Jumbo loans exceed limits set for government- controlled mortgage companies Fannie Mae and Freddie Mac, currently from $417,000 to $729,750 in the highest-priced areas.
http://www.bloomberg.com/apps/news?pid=20601087&sid=akEwNkXjb.Go
Part 2 coming...
Coach T
LBI Europe setting time to get money back to customers (13B out of 32B).
http://www.ft.com/cms/s/0/7438bd2e-70d5-11de-9717-00144feabdc0.html
The time is rapidly approaching to know what if any apples are left in the estate basket.
Enjoy,
Coach T
So basically out of an initial 600B+ of assets, 1.2B separate the two preferred classes (trust and regular). With nothing standing in priority between. Right?
Coach T
So what debts are between the Trust Preferreds and the regular preferreds?
Aren't the Trust Preferreds after the Sr. Unsecured in priority?
Claims? Most of the claims are going to be the Sr. Unsecured bond holders.
Coach T
I am working up to something...
Check my math...look right?
I calculate 1.2B total face value of all Trust Preferreds
LEHNQ - 8,000,000 shares @ $25 Face Value = $200M
LEHKQ - 12,000,000 shares @ $25 Face Value = $300M
LEHLQ - 12,000,000 shares @ $25 Face Value = $300M
LHHMQ - 16,000,000 shares @ $25 Face Value = $400M
Total Trust Preffered FV...............................$1.2B
Regular Preferred
LEHCQ - 5,000,000 shares @ $50 FV = $250M
LEHDQ - 4,000,000 shares @ $50 FV = $200M
LEHFQ - 12,000,000 shares @ $25 FV = $300M
LEHGQ - 5,200,000 shares @ $25 FV = $130M
LEHJQ - 66,000,000 shares @ $25 FV = 1.65B
LEHPQ - 4,000,000 shares @ $1000 FV = $4B
LBHGP - 2,000,000 shares @ $1000 FV = $2B
Total Reg. Preferred FV................................$8.6B
Coach T
www.lehmancreditors.com
Look under "Significant Events In Case"
Click on "Significant Events In Chater 11 Case"
Look under "Section 341 Meeting of Creditors Transcripts"
It gives alot of additional insight. Open the presentation slides at the same time you read the transcripts.
Enjoy,
Coach T
Potential Assets Available to LBHI before paying Sr. Unsecured, Jr. Unsecured, Trusts, Preferred, Common, Claims???
Per the Creditors Transcripts and other items divulged since filing...
12B Cash
5.5B Derivatives net of reserve holdbacks
40B Real Estate/PE/Bank Platform
?? "Illiquid Assets"
?% of 50B Subsidiary Loan recovery
?% of 50B NET Receivable Recovery
?17B JPM
?$B Barclay's Discovery
?16B LBI
10B Non-Debtor Companies?
Now run your numbers...thoughts?
Coach T
On page 35-36 of the 341 Creditor Meeting Transcripts Mr. Marsal talks about how LBHI lent 50B to its various subsidiaries. Furthermore, he says that some of the subsidiaries have given a recovery rate and some have not. It would be interesting to know what the ones that have given the recovery rate numbers are,and, how much money that would mean to the total pot?
On page 36 it Mr. Marsal talks about LBHI has 50B in NET receivables over payables from subsidiaries. That number was only about 6B NET receivables when the first MOR released a balance sheet dated 09/14/08.
Due from subsidiaries and affiliates $393,620
Due to affiliates and subsidiaries $387,545(in millions).
Pretty big move in the company's favor I think.
Any thoughts?
Coach T
Here is an example of an illiquid asset. LBHI has kept its 15% interest in Formula 1. As I recall today's value in the dockets was worth far more than the $2.8B LBHI had into the deal.
I will be interesting to see what assets are considered "illiquid" and what the 12/31/08 values are.
Illiquid assets are due to be disclosed in mid August with values dated as of 12-31-08 per MR. Marsal and the Presentation to creditors.
http://www.ft.com/cms/s/0/6b25af06-6db2-11de-8b19-00144feabdc0.html
Coach T
That story is from a motion in the LBHI Dockets. The Ad Hoc Committee.
Maybe this will get the froth going a little.
Question:
What happens to the NOL's for 10B+/- for the LBHI in the event of liquidation? No one or entity can purchase common or conv preferreds to more than 4%+. Don't commons have to be intact for the NOL's to carryover to new owners? Doesn't that give general preferreds a first position?
Anyone an expert on the Net Operating Loss accounting?
Thanks Coach T
I found this tidbit that talks about the setoff provisions. The article specifically was about a recent docket decided in the LBHI favor.
http://lawprofessors.typepad.com/banking/2009/07/banks-and-the-right-of-setoff-lehman-brothers-bankruptcy-illustrates-a-potential-pitfall.html
Good Luck,
Coach T
Viva:
I checked the bonds this morning at www.FINRA.org. Although they had not made significant movement in price upward today, the mornings prices reflected broad activity as high as it has been since the filing date.
Now the prices are at $.145-$.165+. It would be nice to see that price move to the mid $.50's+ after the meeting...
Good Luck,
Coach T
According to how the last creditors meeting went, the presentation and the transcripts were both posted to the www.lehmancreditors.com website.
I am still waiting for answers to my questions from the Lehman Helpline.
Good Luck,
Coach T
Did you hear the following comments from Mr. Marsal on the CNBC interview?
3:00 minute interval he says..."Bank was solvent"..."Just ran out of liquidity"..."Didn't have cash to operate"...Company had sufficient capital".
14:50 minute interval When asked by Joe Kernan about how much assets are left he says..."I'd have to kill ya if I told ya"...cause then everyone would be trading on it"..."We still have a significant amount of assets"..."Have only sold a fraction".
FYI
Coach T
There have been questions on who should file a claim. I found this paragraph for those NOT needing to file a claim in the annaouncement of the bar date:
ORDERED that the following persons or entities are not required to file a Proof of Claim on or before the Bar Date:
C) any person or entity that holds an interest in the Debtors, which interest is based exclusively upon the ownership of common or preferred stock, membership interests, partnership interests, or warrants or rights to purchase, sell or subscribe to such a security or interest; provided, however, that interest holders who wish to assert claims (as opposed to ownership interests) against the Debtors that arise out of or relate to the ownership or purchase of an interest, including claims arising out of or relating to the sale, issuance, or distribution of the interest, must file Proofs of Claim on or before the Bar Date, unless another exception identified herein applies;
Enjoy the 8th of July!
Coach T
Bar Date approved and Extension for Reorg Plan requested to March 15, 2009.
According to the court dockets under LBHI dockets, LBHI has gotten approval of the Bar date for September 22, 2009 with last day for filing derivatives claims of October 22, 2009.
Accordingly, the Debtors are requesting an extension of their Plan Period and Solicitation Period through and including
March 15, 2010 and May 17, 2010, respectively.
The docket #4253 provides an interesting read. IMO the docket sounds much more upbeat about the current and future situation at LBHI.
Creditors meeting on July 8th should provide alot more specific information on assets and liabilities.
Enjoy the ride,
Coach T
Bar Date approved and Extension for Reorg date to March 15, 2009 requested!
According to the court dockets under LBHI dockets, LBHI has gotten approval of the Bar date for September 22, 2009 with last day for filing derivatives claims of October 22, 2009.
Accordingly, the Debtors are requesting an extension of their Plan Period and Solicitation Period through and including
March 15, 2010 and May 17, 2010, respectively.
The docket #4253 provides an interesting read. IMO the docket sounds much more upbeat about the current and future situation at LBHI.
Creditors meeting on July 8th should provide alot more specific information on assets and liabilities.
Enjoy the ride,
Coach T
Viva:
I was thinking the same thing so I checked the time and sales at www.otcbb.com
You will see a (z) trade that looks like it was posted for 81000 shares at $.50 today at 15:43. The (t) trades took place earlier and have no new relevance. Ia am not sure what a (z) trade means. Anyone?
t 1.25 17427 OTO 16:06:12
t 1.25 1000 OTO 16:00:30
1.25 200 OTO 15:59:29
1.25 500 OTO 15:58:41
1.25 7000 OTO 15:58:04
1.25 300 OTO 15:57:51
1.25 815 OTO 15:57:27
1.28 269 OTO 15:56:41
1.40 500 OTO 15:54:19
1.40 500 OTO 15:52:58
1.50 100 OTO 15:51:48
1.50 100 OTO 15:51:46
1.50 500 OTO 15:46:59
1.50 50 OTO 15:45:42
1.50 650 OTO 15:45:35
z 0.50 81000 OTO 15:43:32
1.50 1000 OTO 15:42:06
1.50 3161 OTO 15:41:19
1.50 100 OTO 15:34:17
1.75 50 OTO 15:33:50
1.75 800 OTO 15:33:31
1.75 300 OTO 15:23:17
1.48 6000 OTO 14:20:41
1.50 657 OTO 14:19:03
1.50 200 OTO 14:16:15
1.50 200 OTO 14:13:56
1.50 260 OTO 14:11:32
1.50 125 OTO 14:06:19
1.50 175 OTO 14:05:22
1.50 1000 OTO 13:54:38
Looks like something to do with yesterday's trade for 81K. Maybe someone made a mistake with the order, it had to be "backed out" and the MM is trying to get on the "right side" again with positions.
Good Luck,
Coach T
Furthermore, I have always thought that many of the J's were sold to high level foreign investors with upper level ties. LEH had many ties with the Korean Bank, Foreign Governments, etc.
As I recall, LEH put the J's together virtually overnight after the Bear Stearns debacle. You don't raise 6B+ in one preferred series selling to "Mom and Pop".
I just can't see those type of investors taking those kind of losses when we need them to be buying our Treasury bonds/bills. There is going to be something left for them/us IMO.
I tip my hat to the men and women of the US Armed Forces protecting us around the world! Happy 4th of July weekend.
Coach T
LEH did not buy a bank...they own a non-debotor company called Lehman Brothers Bank, FSB. It was renamed Aurora Bank and has received added captial from the parent company LBHI.
LBHI is currently requesting court approval to put additional capital into the bank so that it has even greater ability to "weather" the recession.
If it has enough capital then Aurora Bank can sell brokered Certificates of Deposit to customers. Which increases the value of the bank as it gets past the issues we all know about...RE.
Enjoy,
Coach T
Lehman's are getting ready to move out...consolidation patterns look like the weak hands are done selling and new hands coming in for shares IMO.
Would not surprise me to see a "gap" opening any day that never allows new money to accumulate. All in my opinion.
200 day SMA is dropping down in about three days we will be above for the first time since filing Chap 11 if current prices hold or increase.
Get 'em now...
Coach T
Did you see in the court dockets today that LEH own's an interest (16%) in the Formula One World Chamionship? This is another example of the depth of assets IMO. Not every asset is worth $.10 on the dollar,
The Companies are holding companies formed in 2007 to hold the
ordinary shares and refinance the debt of Alpha Topco Limited and Beta Topco 1 Limited
(together, the “Operating Entities”), which, in turn, hold the rights to commercially exploit the
FIA Formula One World Championship, a leading global motor racing series. FIA Formula One
World Championship currently includes 11 teams competing in approximately 17 races per year
around the world. The Operating Entities’ revenue is predominantly derived from TV
broadcasts, race promotions, advertisements and hospitality revenue. FIA Formula One World
Championship is widely considered to be the pinnacle of motorsport with the most
technologically advanced cars and the best drivers. Its events are viewed by a global audience of
approximately 500 million people in 174 countries,
Enjoy,
Coach T
I don't see a difference in the Trusts. Whatever is the least expesive that you can get size in. Our consolidation from the $.02 breakout is about over IMO on all of the regular preferreds. I believe the J's provide the most "liquidity" IMO.
Volume here should help to push thru $.07 on J's. to $.10-.15 area.
Trusts should benefit into the $.40-.50 range.
Volume patterns look good...now we need people from all over the world getting the idea that there is some meat on the LEH bone!
Enjoy the ride!
Coach T
No. I spoke with the LEH Representative and she said that the Master Securities List had not been put on the wesite yet, but it that was being worked on for completion. Must be along list of securities.
Coach T
Good point Life...the 200 day SMA is dropping rapidly. We are about four trading days away from the acutal 200th day of post filing trading. Then the 50 SMA will be about ready to cross the 200 SMA.
It will be interesting to see how the "market" begins to trade after this week. Next important date after today is the July 8th Creditors Meeting. We should get quite a bit of data that day.
I love the way the LEH team attacks the opposition. I wonder if the opposition ever gets tired of losing. Of all the court motions filed, I only remember the LEH team losing one for a nominal motion.
Good Luck,
Coach T
I have not seen anything on the LEH money being held at JPM. I believe we will see alot of dialogue on July 8th when the creditors meeting is held. It was during this meeting in January 29,2009 that JPM and the 17B was first discussed.
That forum is where Mr. Marsal and team will go in depth about current status of RE, Derivs, etc.
After that it is getting the bar date and forms approved to set the last day to file a claim against the LEH debtor companies. Currently, that motion is trying to use Aug 24, 2009 as the bar date.
Enjoy,
Coach T
Looks like the weak hands are about done selling. Saw a bit of buying towards the end of the day.
All the Lehmans have good volume patterns and looks like cup and handles forming on low level bases.
Look for volume coming in should drive prices up.
MM's drop their bids but not the ask. IMO that means they are trying to get holders to panic out of their shares...
Just my thoughts...good luck,
Coach T
It is as good as I expected. They are not going to post final liabilities until after the bar date IMO.
If the upper crust secured ceditors have been paid, now it is easier to work with unsecured creditors. They already only expect $.10 on the dollar.
We are still missing alot of information on value however...
Good Luck,
Coach T
There are still an estimated 200B in liabilities that are UNSECURED.
The problem is that no one has any idea, good or bad, what the assets are currently worth because they have not been valued since the filing dates.
I take Mr. Marsal at his word that there are roughly 200B in A and L.
Looking at just the LBHI schedule today they show assets of 211 billion by itself. We just don't know current value. Some posters think all the assets left are in Real Estate and are worth 10-20% of original value. I do not believe that IMO.
Separate debtor company LB Special Financing by itself, has 48B in assets according to today's revision in its separate entity with about 15M in claims against it. But remember, that is valued as of the filing date for the most part.
Good Luck,
Coach T
There is or will be a revised schedule filed for each of the dortor entities!
One for the holding co. LBHI one for
LBSF
LCPI
etc.
According to the EPIQ LBHI page virtually all of the claims are filed against the holding company.
Separately, they all have their own assets.
NOT ALL OF THE ASSETS ARE IN REAL ESTATE IMO.
Coach T
REVISED SCHEDULES ARE COMING OUT!
Go to the LBHI Dockets page for review.
Highlight is that LBHI only has 235M that's right 235M not Billion in Creditors holding SECURED claims.
Assets are still mostly dated from the filing date. Carried still at 211 BILLION! That will go down I am sure but great news on the secured creditors netting out their positions and LBHI still holding significant amount of assets.
Remember, most claims were backed up by LBHI the other debtor companies don't have alot of claims on them. Still lots of assets in those debtor and non-debtor entities to help with unsecured claims.
Enjoy your reading..more to come!
Coach T
I have not seen anything so far...all is quiet.
Coach T
Demand for LEHMAN bonds at www.FINRA.org seems to be getting better over the last two days. Prices are going up and demand appears broader over more differing bond types!
Some bonds that initially went from 11 to 14-16 are holding and it apprears that a wide number of them have gone from 7-9 to 11-11.5 over the last 2 trading sessions!
Maybe we will get some good news after the close.
Coach T
Mic:
I believe what Barclay's is selling is its asset manageent division to raise money for their Tier 1 capital ratios.
Coach T
How big is the Barclay's asset manager they are selling in relation to Nueberger?
Something tells me this will increae the value of all asset managers including LBHI's 49% interest in Nueberger!
Coach T