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It's amazing what a few pennies found in the couch can buy these days. :)
Nice end of the day dump below the bid while the MQ's closed green. There's going to be a hurricane force reversal here soon imo.
Does he still like this one? Might buy a few since its down about %80 from his call.
Is anyone posting buying shares here? The disconnect between the commons, preferreds and trusts is huge!
This road is turning out to be a very long one.
Lehman's big JPMorgan case set for trial in 2012
On Wednesday July 14, 2010, 4:01 pm EDT
By Jonathan Stempel
NEW YORK (Reuters) - No one ever said the Lehman Brothers bankruptcy case would be easy, or quick.
Lehman Brothers Holdings Inc's (Other OTC:LEHMQ.PK - News) lawsuit accusing JPMorgan Chase & Co (NYSE:JPM - News) of siphoning billions of dollars and hastening its record bankruptcy is unlikely to be ready for trial before April 30, 2012, under a timetable approved Wednesday by U.S. Bankruptcy Judge James Peck in Manhattan.
The May 26 lawsuit accused JPMorgan of using its "unparalleled" knowledge of Lehman's distress, as the main "clearing" bank for Lehman transactions with other parties, to extract $8.6 billion of collateral in the four business days ahead of Lehman's September 15, 2008 bankruptcy.
It said officials including JPMorgan Chief Executive Jamie Dimon took the collateral after learning from Federal Reserve Chairman Ben Bernanke and then-U.S. Treasury Secretary Henry Paulson the government would not bail Lehman out. Lehman said the bankruptcy estate and creditors deserve the collateral.
JPMorgan has denied wrongdoing.
At a Wednesday hearing, Lehman's lawyer John Quinn of Quinn Emanuel Urquhart & Sullivan LLP said each company expects to depose 50 witnesses from the opposing side. Depositions and fact-finding may not be completed until June 30, 2011.
"It's a complicated, large case," Quinn told the judge.
"Is it really going to take until sometime in 2012 for this case to be trial-ready?" Peck asked.
"We think that it will," Quinn responded.
Paul Vizcarrondo, a partner at Wachtell, Lipton, Rosen & Katz representing JPMorgan, said he agreed with the timetable.
Peck accepted it.
"At this point," he deadpanned, "my calendar for 2012 is mostly open," prompting much courtroom laughter.
In March, Peck authorized an accord under which JPMorgan would return several billion dollars of assets to Lehman's estate, but which gave Lehman a right to sue further.
Lehman collapsed from overexposure to commercial real estate, subprime mortgages and other risky assets.
With $639 billion of assets, it remains by far the largest U.S. company to go bankrupt.
The case is Lehman Brothers Holdings Inc et al v. JPMorgan Chase Bank NA, U.S. Bankruptcy Court, Southern District of New York, No. 10-03266. The main bankruptcy case is In re: Lehman Brothers Holdings Inc et al in the same court, No. 08-13555.
http://finance.yahoo.com/news/Lehmans-big-JPMorgan-case-set-rb-2486693482.html?x=0&sec=topStories&pos=7&asset=&ccode=
It's interesting to me. The sequence of events with this stock have been highly unusual. I agree with Redcatcher on that point completely.
And here's another one.
April 15 (Bloomberg) -- Lehman Brothers Holdings Inc. won a judge’s approval today to split into two businesses: one to manage its illiquid assets for five years and another to handle work arising from its 2008 bankruptcy.
A unit called Lamco with 455 employees would run Lehman’s real estate and private-equity assets, while the parent company would keep 220 employees to handle claims stemming from its Chapter 11 filing, Lehman said in March.
The Lehman parent might be able to pay almost $41 billion to creditors with allowable claims of $294 billion within five years, compared with $25 billion, or less than 9 cents on the dollar, if the assets were liquidated now, Lehman said in a disclosure explaining its plan yesterday.
Lehman revised the Lamco proposal after it was criticized by Goldman Sachs Group Inc. and eight other financial companies including Morgan Stanley, Credit Suisse Group AG and Deutsche Bank AG. They called it “a reorganization plan for debtors’ employees and management separate, apart and ahead of the reorganization plan for creditors” in an April 5 court filing in U.S. Bankruptcy Court in Manhattan.
Lamco, registered as an investment adviser with the U.S. Securities and Exchange Commission in January, would provide longer term jobs for 70 employees of the restructuring firm Alvarez & Marsal, co-headed by Lehman Chief Executive Officer Bryan Marsal, as well as for 385 Lehman workers, according to court filings. That would give it twice as many workers as the company entrusted with running the bankruptcy on behalf of creditors.
Lehman Affiliates
Lamco, which would also manage assets such as derivatives and corporate loans for Lehman affiliates, also drew creditors’ criticism for denying those affiliates a stake in the venture. Affiliates would help fund Lamco, yet Lehman would deprive them of “any governance or ownership interest,” said the banks, which are derivatives creditors of a Lehman affiliate, Lehman Brothers Special Financing.
Lehman yesterday said it would “enhance the governance right” of its creditors committee by giving it sole right to appoint an independent director to Lamco’s board and eventually distribute some of its Lamco stock to affiliates. The moves fended off some objections to Lamco and “resolved the issues raised” by the derivatives creditors and Lehman’s U.K. units, which also objected to the Lamco plan, it said in a court filing, asking the judge to overrule any remaining objections.
Creditors’ Money
Judge James Peck, who has jurisdiction over the largest bankruptcy in U.S. history, has generally allowed Lehman’s requests to undertake longer term investments that aren’t usual for bankrupt companies. In January, he agreed to let it spend $1.4 billion of creditors’ money to buy loans and mortgages from an insolvent German affiliate, Lehman Brothers Bankhaus.
Last month, Peck voiced reservations even while approving a settlement between Lehman and JPMorgan Chase & Co. that would produce more assets for Lamco to manage. Under the accord, JPMorgan is to return to Lehman $9 billion in illiquid securities and real estate that are hard to value, taking cash and collateral in exchange.
“It’s hard to see the benefit to the Lehman estate,” Peck said in court. “Is this just to prime the pump of Lamco?”
In total, $1 trillion of claims were filed against Lehman, which removed duplicates to get $740 billion, according to the disclosure statement. Lehman has said allowable claims might be as low as $260 billion.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
http://www.businessweek.com/news/2010-04-15/lehman-seeks-to-spin-off-asset-manager-deflecting-objections.html
Daktok - Is this what you were looking for?
Goldman, Morgan Stanley Fault Lehman’s Business Plan (Update1)
April 06, 2010, 11:48 AM EDT
By Linda Sandler
April 6 (Bloomberg) -- Goldman Sachs Group Inc., Morgan Stanley, Credit Suisse Group AG and other banks objected to Lehman Brothers Holdings Inc.’s plan to build an asset- management business, saying the bankrupt investment bank should focus on paying creditors.
The new business would be “a reorganization plan for debtors’ employees and management separate, apart and ahead of the reorganization plan for creditors,” the banks said yesterday in a court filing.
A unit called Lamco, staffed by current employees and managers, would run the defunct investment bank’s real estate and private-equity assets, also taking outside business, Lehman said in March. Chief Executive Officer Bryan Marsal has said the assets might eventually fetch about $30 billion, out of a possible $50 billion in recoveries for creditors.
The Lehman parent would have sole control and ownership of Lamco, denying “any governance or ownership interest” to affiliates that helped to fund Lamco, or to creditors, Goldman and the other banks said. They described the proposed Lamco deal as an “insider transaction,” not an “arms-length sale.”
Further Education
Most of the issues in the objections should be resolved with “further explanation or education,” Marsal said in an interview today.
“The issue of ownership is the one legitimate or philosophical issue that may take longer,” he said. Right now, creditors of the Lehman holdings company want 100 percent ownership of Lamco, he said.
The objection was filed by seven banks and two investment companies that are derivatives creditors of a Lehman affiliate, including Merrill Lynch & Co., its parent Bank of America Corp. and Deutsche Bank AG. By putting Lehman managers and employees ahead of creditors, Lamco would turn the Chapter 11 reorganization “on its head,” they said.
Lamco would fulfill an immediate need to manage Lehman assets that would fetch much more money if sold over three to five years than if they were liquidated today, Marsal said. It would use people and infrastructure that already are available, and wouldn’t change compensation for the Alvarez & Marsal restructuring firm or Lehman employees, which already are in place, he said.
Lehman’s U.K. units objected to the plan in a separate filing, saying Lehman hadn’t provided enough information to assess its merits.
A hearing on the Lamco proposal is scheduled for April 14 in U.S. Bankruptcy Court in Manhattan. Lehman that day is due to file a detailed explanation of its liquidation plan, outlined on March 15 together with the Lamco proposal.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
http://www.businessweek.com/news/2010-04-06/goldman-morgan-stanley-fault-lehman-s-asset-management-plan.html
Yes I agree there could be a similar pattern.
Funny how fast things can change. When I bought the Lehman trusts, A&M were described as the heroes of large reorganization by several posters. There aren't many of them posting now. It appears Judge Peck is our best chance of an objective, and perhaps heroic, assessment at this point. Anyone want to give odds?
And I agree with that yahoo poster's assessment of the legal E. africanus asinus.
The oil spill is a disaster. And the long-term effects of this spill are incalculable currently. BP is on the hook for the damage and the US government needs to act quickly. The SEC better make darn sure they aren't overstepping their authority with this one.
Ask yourself this simple question. Who really has the most to lose in a longer term scenario if ACLH has a valuable fluidizer product for oil wells that may also be useful in the clean up efforts?
I'm just waiting for this one to re-open for trading. Best of luck to those already here.
Yes the SEC always looks out for the little guy. That's obvious.
So is this an oil sands plays and a possible oil spill play in your opinion?
Where are you looking to get in since you see potential? I'm thinking it's going to get interesting when this stock trades again.
I'm curious if the 100K shares that traded just after the open were reversed. You were certainly on top of things before the opening bell with that post. I wonder why the trades were allowed if the stock was halted before 9:30?
Nice FGT - I'll cheer when the MM's take the handcuffs and duct tape off of the share price and Lehman's pull a houdini escape from this whodunnit.
Go LEHMAN!!!!!
Yes it's just under 10K so might up it to 11K. I know AON's are hidden. I really don't understand why someone would be using them at these low prices. It only helps the MM's at their game.
MM's not playing fair. No bid showing for the K's currently on level II. I have an order in for shares at .02 though the brokerage is showing .06 bid when I place my order. Anyone else have bids in for the K's?
I did say a penny or lower lol! The real question is: if I bid for them, will I get them? Otherwise I'll have to wait for the MM's to bring the ask down that low.
Agreed At this point I'm waiting for a penny or lower.
Why are the commons trading higher than the CT's anyone? Liquidity is no longer a reasonable excuse.
Daktok - My level II shows a bid by DOMS @ .027.
Not many sellers.
Does anyone have a sell order in on the LEHLQ's lower than .33 or a bid higher than .05?
It seems to me most of the discussion currently on the board is about semantics -isn't that what the lawyers want - when the real issue is still the balance sheet. It's the lynchpin.
Why was there such a big change in the ratio of A/L from months ago and in the disclosure, little mention of future gains through continued litigation, continued restructuring of the debt, and NOLS?
Coach T where are you?
Unless you look at the share price of the lehman family. Really sick that the commons are still trading 3 times higher than the J's.
Linda and Marayatano - Thank you both for digging into the details and giving your interpretations. I still do not know which of you is correct.
I'm keeping in mind, this POR, with a few words from the Judge Peck could soon be as irrelevant as yesterday's air biscuit. = )
Troy - Thank you so much for everything you've done. It will pay off in the long run. Be sure of it.
Go Lehman!
Is Lehman through some entity trying to shake out the retail holders of the preferreds and CT's on the cheap? Seems like it to me.
Too many games being played by A&M since they are not producing the balance sheet. The December one will still be misleading and several months out of date even when its delivered.
Anyone know when Judge Peck is likely to issue a ruling on the disclosure statement and will he require an updated balance sheet before he does?
Same price as commons. J's now trading at .03 under the current bid of .046. MM's working hard to drag these down aren't they?
Level II is worthless on the CT's. I've got buys not showing and sells not showing. Spread on some of the CT's huge and not reflective imo of anything. On the J's hard to tell since it's tighter. Here's what I have.
Bid
ETMM 100 .043
DOMS 100 .042
NITE 100 .042
Ask
NITE 1 .0499
DOMS 100 .055
HDSN 100 .50
Lol! I'm right there with you JH. Let's see if they trade more shares under our bids.
I hope the perfect storm comes back. Coach must be waiting for that balance sheet. I hope he's buying.
Is there a deadline for having to publicly release the balance sheet? Many were expecting it with the disclosure statement.
I'm putting in low ball bids across the CT's. Maybe I'll get lucky.
This situation is still upside down. What's it going to take to change it?
Why are commons up again?
In the article that was posted, I saw no mention of the NOL's or money Lehman could get from Barclay's litigation either.
I agree. Now if only someone with deep pockets could get the J's at least equal to the common share price. What's it going to take to loosen the grip the MM's have over these?
Funny how that spooking happened to the biggest fans of the Lehman parlay imo.
The J's are still trading lower than the commons. At one point today some of the CT's were only a few pennies higher than the commons.
Somewhat off-topic regarding the re-organization, however now I realize one asset that Barclay's really wanted from Lehman. I wonder how much Lehman's legacy platform is now worth to them? My apologies if this has been posted before on the board. I found it interesting and thought I'd share. I've not been able to keep up with all the posts recently. Still holding all my Lehman shares, including the J's.
BarCap equities business more than a chip off the old block
Mon, 2010-02-15 09:24
Although Barclays Capital’s global electronic equities trading business has been built on legacy Lehman Brothers technology, that is where the similarity with rival bank Nomura’s offering ends, says Brian Fagen, BarCap’s recently-appointed head of global equities electronic trading distribution.
BarCap bought Lehman’s US equities franchise after the bank’s collapse in September 2008 and combined it with its existing BARX electronic trading offering, which was predominantly non-equity focused. Nomura snapped up the corresponding European and Asian units. Both firms have since developed global electronic trading capabilities from their respective acquisitions.
“I don’t think any of our peers has a product set that resembles ours more than it resembles any other broker's,” says Fagen. “Barclays Capital’s acquisition of Lehman Brothers presented a clean break. We have a team of algorithmic developers that were brought into the fold as part of the BARX business. We have rehired a lot of people in the US in our quantitative development and analytics areas”
Fagen adds that because the US equities market was more fragmented than Europe’s at the time of Lehman’s demise, the company’s US trading technology was more advanced than its European offering.
In addition to the US, BarCap now has equity franchises in Europe and Asia, and is starting to develop business in Latin America. Currently only available in the US, its LX dark pool is scheduled for launch in Europe in Q3 this year, and in Asia during 2011.
BarCap wasted little time in rebranding and relaunching the former-Lehman business. The salvaged unit started to open for business on 22 September, and US equities trading and research was rolled out on 30 September. Existing BarCap equities execution clients in the US were migrated to the legacy Lehman platform.
However, the platforms in BarCap’s other target markets were developed from scratch. The lack of a ready-made platform outside the US gave the company more scope to develop new products from the legacy technologies of both firms. “We had the chance to decide what our new product offering would be by looking at the BARX equities platform alongside the pieces of the Lehman infrastructure and technology that were global,” says Fagen. “We also had some time, because we had to engage in a much larger build for the European and Asian businesses. Our analysis came up with some interesting best-of-breed solutions.”
For example, because BARX lacked a dark liquidity-seeking algorithm, Lehman’s was used. But because BARX’s VWAP and implementation shortfall algos were superior to Lehman’s, the legacy BarCap strategies made the cut.
BarCap went live in Europe and Mexico in Q4 last year and Japan at the beginning of January this year. The Japanese platform is currently serving international clients trading into Japan, but BarCap hopes to add local clients in the next few weeks, followed by international firms with local Japanese offices. It is also planning to expand into Brazil and Hong Kong.
Fagen acknowledges that the cornerstones of BarCap’s electronic equities trading offering – algorithms, high-frequency and standard direct market access, the LX dark pool, the RealTick execution management system (offered by wholly-owned subsidiary Townsend Analytics) and the legacy Lehman Portfolio WebBench tool –bear comparison with any other large broker’s suite, but he argues the differentiator lies in the consulting and service accompanying the trading tools.
In particular he feels Portfolio WebBench is fulfilling current buy-side needs for
pre-, post- and real-time trade analytics. “We get engagements from a number of clients now asking us to do post-trade consultancy work with them that goes beyond the typical vendor-based transaction cost analysis (TCA) products,” says Fagen. “Those products are great for the board level or for a standard TCA analysis, but there's a lot more that a trader can learn about how to execute better with less market impact and determine the right type of strategy for a given environment. We hear from our clients more and more that this is where we can add value and it is where a lot of our focus has been.”
http://www.thetradenews.com/node/4243