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Cusips for capital trusts listed at top of board page.
With almost 100k posts every angle to this bankrupcy has been well covered. To me, it comes down to 4 things. Our trustees have been inexcusably MIA, the greedy lawyers are milking this, the judges should have wrapped this up years ago, and dragging this out or trying to manipulate share prices so many investors give up and sell their shares is benefitting others. Unfortunately, a lot of people are trying to get away with whatever they can. We are left hoping Judge Chapman and the trustees do the right thing and either buy our shares a FV + divis or allow shares to trade again. Either way, I expect this saga to end this year.
I agree that would save LBHI or whoever is on the hook for CTs a ton of money if they can buy up shares now to reduce the payout later. Any way to confirm they can do it and wouldn't they need to disclose it in their financial reports. I also think there is a lot of manipulation of share prices by the MMs and their colluding partners.
The definition of cherry picking...
When you are anti-CTs and you only cite old docs that support your bias.
The definition of case law...
You weigh old and new docs and understand which are most relevant and super cede others.
Many thanks to those who shared their DD and a huge thanks to Cotton for writing to the judges.
I'm convinced that we're going to get paid by whomever the courts rule were the last legally obligated to pay the cap trust shareholders BEFORE bankruptcy and because they continued to trade POST bankruptcy. The value of the NOLs also offers another path to a payoff. The big unknowns are when and how much.
Without getting into the motives of some of the posters, who is holding until the end, who plans to sell as soon as a price target is reached and who doesn't own any shares? I'm in until the final outcome and I bet most posters are too.
Anyone have a theory on the recent and significant
number of claims transfers from Silver Point Capital to Goldman Sachs? I'd love to know their reason for buying so many claims from another big player.
It sure looks like the MMs are still influencing prices and volume. Hard to understand how O, 250, 1,535 and 14,237 shares of LEHKQ, LEHNQ, LHHMQ, and LEHLQ, respectively, traded on the same day (yesterday). With all the encouraging news showing up on the docket and in the media, you would think the share prices and volume would start creeping up. The skeptic in me also thinks Guster is a trader trying to convince people to unload shares so he can buy them. Let's hope the judge and the trustee lawyers uphold our rights. I like our strong hand and will be holding until the end.
Plus we're in the same boat as some of the biggest players on Wall Street and they aren't known to be fools or patient.
I completely agree that a portion or all of the $15 billion is going to classes 10 & 11. I believe the 4 capital trusts with divis would total only $1.5 billion. Why continue to pay classes who were paid in full when others have guarantees and are still waiting in line. The BOD incentives to paid trusts, etc. also holds a lot of weight with me.
JP Morgan could be a candidate.
They are wrapping up several lawsuits, still making $ and could use the NOLs. I believe they also own Lehman CTs and possibly other things. It would also help them avoid the risk of losing the lawsuit against Lehman.
It's also quite possible that our CTs are outside of the POR, owned and controlled by Barclays, etc.
Aren't some big institutional players
also big CT holders? As well, I have faith in our trustee. Another thought is that mergers are usually announced on Monday mornings so we could be days away from solving the NOL mystery and more.
Sent my letter. Thanks.
Just wondering...wouldn't any income received/distributed this year need to be factored into the 2013 tax return due next year?
Also, given the recent decrease in claims/liabilities, increase in revenue/assets, decrease in expenses, etc. I think there will be enough cash available to complete the POR next month and reveal the fate of the remaining creditors. The decision makers seem to be orchestrating a number of things to happen about the same time and within the next month.
Anyone what to weigh in on whether any of the following will influence if and how much CT, preferred and common shareholders get in the end?:
1. LAMCO management contract incentives
2. Lehman board incentives
3. Judge Peck
4. Growing number of withdrawn and settled claims
5. Outstanding lawsuits settled or won
Many impressive legal and financial reasons why CT holders should be paid have already been posted. Other factors that may help us include: contract incentives for A&M and the new Lehman board to maximize creditor payments; our trustees; and Judge Peck who was quoted in Too Big to Fail as saying "I feel that I have a responsibility to all the creditors, to all of the employees, to all of the customers and to all of you (the lawyers)" I think we have some key players in our corner who want to make sure shareholders get their fair share. Anyone agree?
or an anticipated settlement or acquisition - but it would be great if it was for dividend.
Thanks for all the effort and for showing how poor the financial reporting has been to date. I hope Judge Peck and the trustees put an end to the nonsense. Aren't there consequences for intentionally misleading investors?
I was happy to submit a joinder to your last objection. I don't have anything new to add or reason to file my own. My issues remain the same. Tens of thousands of investors were deceived before the bankruptcy and the remaining shareholders continue to be denied basic information that would allow them to make informed investment decisions. An equity committee would end the abuse. Without one, A&M, their law firms, investment banks and hedge funds will continue to ignore us. It's time for Judge Peck to take control of this bankruptcy. Imagine if Lehman comes out of bankruptcy and shareholders are justly compensated. Public trust and investor confidence would improve tremendously. Failure to uphold shareholder rights in the largest bankruptcy ever increases the likelihood of more lawsuits and government intervention. Thanks to your efforts and others, we at least will be heard. I'm hoping our patience and persistence will pay off in the end.
I'd raise several issues with Vanity Fair like the total lack of shareholder representation by and communication from the Indenture Trustee The Bank of New York; the absense of an equity committee; the misleading and sometimes false statements and actions of Lehman management and Y & R; the lack of transparency from A & M; and finding of the Examiners Report that show how JPM and others forced Lehman into bankrupcy. The net effect is that shareholders have lost 99% of their investment and creditors who took the biggest risks and contributed to collapse of Lehman are likely to get the largest share of the remaining assets. It may also be worth mentioning that shareholders hold out hope the Judge Peck, A & M and their legal team will protect shareholder rights and help them recover their rightful share. If all goes well then maybe it would be worth discussing the same issues with Linda Sandler at Bloomberg Business Week and others who have been covering Lehman. Good luck and thanks.
Your second joinder was even better than your first. I hope Judge Peck reads them.
Have you or anyone else factored in Lehman's stake in Neuberger Berman into the financials? That could be another $billion+.
I'm happy to support your preliminary objection. The more I follow this case the more I see how Lehman shareholders were misled by Lehman management and are now being victimized by a system that pretends we don't exist. I'm hopeful that Judge Peck and others like you will put the spotlight on this nonsense and restore investor confident and trust. My fear is that the reorganization plan will be approved prematurely and exclude us. My hope is that the cases against JP Morgan and Barclay and others go our way and the Judge sees to it that shareholders can be paid the full value of their investments.
I sent mine in today. Thanks for the template.
Next Steps
Thanks to Coach Tequila, Troy, dnoto, jerseyhawg, Linda and many others for their past and recent efforts and analysis. We are also grateful to Troy and Linda for organizing the letter writing campaigns. I'm mailing my joinder tomorrow and was wondering if everyone can indicate if they sent or will be sending one as well so we have a count.
I also think any future communication with Judge Peck and/or the Indenture Trustee should highlight in a legal fashion some simple shareholder facts:
- misled by Lehman management prior to the bankruptcy as indicated in the examiners report (e.g. Repo 105)
- ignored and abused by Alvarez and Marsal
- neglected by indenture trustee
- maniputlated by MM
- entitled to share of lawsuits (BOA, JP Morgan Chase, etc.)
- $200-270 billion in assets and a plan that wipes our shareholders
On the positive side, the lawsuits have all been favorable to Lehman and the A/L gap continues to narrow (and current assets values might be significantly higher)
Lastly, we should show a united front and seek the face value of the CTs as well as a fairer value to the other share classes and not settle for anything close to the current market value.
I am holding on to my shares until we get what our fair share!
Next Steps
Thanks to Coach Tequila, Troy, dnoto, jerseyhawg, Linda and many others for their past and recent efforts and analysis. We are also grateful to Troy and Linda for organizing the letter writing campaigns. I'm mailing my joinder tomorrow and was wondering if everyone can indicate if they sent or will be sending one as well so we have a count.
I also think any future communication with Judge Peck and/or the Indenture Trustee should highlight in a legal fashion some simple shareholder facts:
- misled by Lehman management prior to the bankruptcy as indicated in the examiners report (e.g. Repo 105)
- ignored and abused by Alvarez and Marsal
- neglected by indenture trustee
- maniputlated by MM
- entitled to share of lawsuits (BOA, JP Morgan Chase, etc.)
On the positive side, the lawsuits have all been favorable to Lehman and the A/L gap continues to narrow (and current assets values might be significantly higher)
Lastly, we should show a united front and seek the face value of the CTs and not settle for anything close to the current market value.
I am holding on to my shares till the very end!
Got the Silver Point Capital letter too.
I don't know if it was send to shareholders who sent letters to Judge Peck.
Thoughts on the release of the Plan. . .
Does anyone think CT holders should do anything before the Plan comes out in Dec.? We're in the dark and have no idea what the Unsecured Creditors Committee, Trustees, etc. are doing or not doing.
I think Troy, Linda and others have given us many reasons to be optimistic about the future value of our CT shares. And, frankly, I think the official balance sheet when released is going to show assets and liabilities almost even. I'm just wondering what else we can do collectively to protect our rights.
Great A/L summary dnoto. I would add .5B per month to cash balance, maybe more settlements like Soc. Gen. and CIBC and possible lawsuits with BoA, E&Y and Citi. The real fun will come when the next Balance Sheet and POR approval in Q1 of next year. The downside is minimal and the upside could be amazing.
In the meantime, does anyone think it makes sense to put together a list of shareholder rights that have been stepped on for the next letter to Judge Peck, the media, etc. Also, is there any benefit to starting a shareholders petition that lists the grievances for possible use down the road for Judge Peck, elected officials, EC, trustees, media?
You deserve every kind word.
Do you see any advantages to sharing your letter with Judge Peck and the main business writers who have been covering the case?
I believe Judge Peck recognized the opportunity he has - to fix some of Wall Street's major problems and to restore shareholder rights - and he will not waste it. I also believe most people are disgusted with Lehman's legal and management fees to date.
Maybe we should start a petition that lists all the shareholder grievances and make sure that Judge Peck, the trustees, select elected officials and the media know about it.
Great list. You also posted earlier that selling Aurora Bank ($1B) was a possibility. The examiner's report also mentioned that E&Y, CME and CITI might be subject to a legal claim.
I think it would benefit all of us if we could agree to a master list of estimated assets and liabilities. It would also be helpful to keep a running tab of the number and amount of claims withdrawals, which is considerable most days.
Any interest and thoughts on the easiest way to do this? Maybe Troy could post it on his site and it could be referenced in any future letters to Judge Peck and the Trustees.
It's all there but hard to track sum totals for each type. I wish the Trustees were obligated to publish readable reports with that information - or that we had an EC that did it. How do you make investment decisions without key up to date financials?
I see the claims number and value dropping at a fast pace. Today there were two withdrawals of claims (8990 and 8989) worth 414,414 each. One was for Siruis and other was for Sirius, probably sloppy filings. Similar withdrawals were posted today. If the pace is maintained and Judge Peck continues to approve motions that enhance the A/L balance then I think the trend is our friend. Anyone see things differently?
To get to a TOTAL NET ASSETS for LBHI well above $40.6 billion with enough to pay CT and Preferred shareholders more than 14.7%, I think we have to push for/hope for significant:
1. appreciation of existing assets
2. reduction of liabilities - mostly through claims reductions
3. improvements in the POR that benefit shareholders
4. lawsuit wins against Barclays, JPM, E & Y and others
5. trustees support/establishment of an EC
6. favorable rulings from Judge Peck
In my opinion, the two biggest negatives to date are the excessive fees paid that are likely to continue for some time and the proposed POR. Otherwise, things seem to be trending our way. One or two big decision that are favorable to shareholders could move us a lot closer to 100% instead of 14.7%.
Are there any holes in this line of thinking?
The claims settlements seem to be accelerating so if we had an up to date A/L that included JPM, for example, it would look even better.
The letter lays out plenty of things for Judge Peck to consider. I'd send as is and save any other points and facts for future letters to the judge, the media, and others.
Thanks to you, the campaign for shareholder rights continues to gain momentum.
Your letter makes many great points. It might be helpful to mention a few others, such as:
- shareholders understand that this is the largest and most complicated bankrupcy in history, but they also feel victimized by some many people and actions that are detailed in the examiner's report and by the seemingly complete lack of representation in the court preceeding that will determine what, if anything, is left for legitimate shareholders
- shareholders patiently waiting for the POR only to be left feeling confused and frustrated by the complete lack of clarity and transparency - but hopeful that your Honor will demand significantly changes that respect shareholders' rights
My points (and I welcome others) are intended to let the judge know that shareholders so far feel marginalized, but hopeful that we will be treated fairly throughout the rest of the court precedings.
Too Big To Fail had a great quote on p. 455 that might come in handy for the EC and other efforts to uphold shareholder rights.
During the hearing in which Lehman is sold to Barclays, Judge Peck says "Lehman Brothers became a victim. In effect, the only true icon to fall in the tsunami that has befallen the credit markets. And it saddens me. I feel that I have a responsibility to all the creditors, to all of the employees, to all of the customers and to all of you."
I think we can convince the judge that shareholders are the biggest victims of all the egregious acts by Lehman, Barclays, JPM, Citi, E&Y and others mentioned in the examiners report. I wish we could also put more pressure on the trustees, A & M and others who have a fiduciary responsibility to shareholders. In addition, we should continue to engage the media in our cause which is to protect shareholder rights and not let anyone snuff them out. Lastly, we should demand that A & M's lawyers use plain English in shareholder-related documents. Investors should be given information that is clear, not indecipherable.