Any posts are my opinion, and should not be relied on for your investment decisions.
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and this note is also included on every balance sheet and quarterly update.
"The Company has prepared the Balance Sheets based on the information available to the Company at this time; however, such information may be incomplete and may be materially deficient. The Balance Sheets are not meant to be relied upon as a complete description of the Company, its business, condition (financial or otherwise), results of operations, prospects, assets or liabilities. The Company reserves all rights to revise this report."
I like the fact that the assets were recorded on 2008 valuation (near fire sale prices) and with such a HUGE $2.6T variance. A&M really wanted to build that bridge to a better time (higher prices for assets).
WOW, a "social media" shell company without a website, LOL. I like our chances better with a company in the financial sector.
While we wait. I always found it interesting that the official examiners report (link below, see specifically page 582) two years after LBHI filed for chapter 11 the total assets listed in 2008 varied between $159B to $2.8 trillion. The examiner goes on to say that it would be soooo time consuming/costly to perform a much more detailed analysis.
http://jenner.com/lehman/VOLUME%209%20-%20APPENDICES%2023-34.pdf
Link to full examiner report:
http://jenner.com/lehman/
That would be burnt money. I'll pass on that one.
GLTA, back to lurking and waiting for now. Will post again if I find anything to share.
Best JW
Ah more negative news, you should just sell your remaining LBHI holdings before they go to zero.
Does the bus also cruise other IHUB boards bearing/bringing bad news to all?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104033683
Share volume today was 1727 shares traded across all CTs.
If the CTs are trading at ~.40/share X 48,000,000 = $19,200,000 ($19.2M) worth of CTs being held each day. Even when these shares came off the greys and traded at ~.50-.75/shr. translates into ~$30M plus was being held everyday. Objectively, seems larger than retail holding.
I'm not a fan of buses either, LOL!
The BOD incentive plan specifically states "the shareholder"...its not plural. Suspect the trustees vote the one new share on our behalf.
The OBS...
The Plan provided for the creation of the Lehman Brothers Holdings Inc. Plan Trust (the “LBHI Plan Trust”). Pursuant to the Plan, LBHI and certain individuals designated pursuant to the Plan as trustees (the “Trustees”) entered into a trust agreement (the “Plan Trust Agreement”), effective as of March 6, 2012, establishing the LBHI Plan Trust.
Pursuant to the Plan, as of the Effective Date, all existing shares of common stock and preferred stock issued by LBHI were cancelled, and LBHI issued one new share of common stock (the
“Plan Trust Stock”) to the LBHI Plan Trust, which holds such share for the benefit of such former stockholders of LBHI consistent with their former relative priority and economic entitlements.
Sounds like your close, may need another month at the cottage (end of summer or early fall likely very nice). GLTU 44 (hope your 100c soon).
Best JW
The May post-effective operating report pages 13-26 show the detail for the BOD incentive plan.
http://dm.epiq11.com/LBH/Document/GetDocument/2500144
We are in year three of the incentive plan (began 1/2012) and at the end of this year the BOD is 100% vested (get all their money) or if before the forth year the directors are not re-elected, due to the Companys stockholder approval to convert to a liquidating trust or more streamlined structure.
Also, the BOD gets an advance next year (April) of ~685K each (based on chance for large recovery and/or claim reductions in 2015...which based on 2013+ CF estimates is VERY unlikely...we have hit the $80B mark early). Fifth and sixth year the advance drops to ~100K (2016) and ~87.5K (2017) per director.
If I were on the BOD, I want to be done by EOY or 1Q next year at the latest. IMHO.
Looks nice. Finish the book?
Three major points that tell me we are close…
1. See the 2013+ cash flow estimates. The $37.6B expected over the several years (after 2013) to get the total to ~80B has been achieved in 2014. Specifically look at page 7, “estimated recoveries” and then see top of page 14, “Overview of the 2013+ cashflow estimates”. The estate makes note that they did not know when the bulk of the $37.6B would be available and we have now hit the ~80B in 2014.
Link
http://dm.epiq11.com/LBH/Document/GetDocument/2453379
2. The current Board of Directors has a large financial incentive to close this out ASAP. Every year this progresses they lose ~10% in their compensation.
3. Cash is getting harder for the estate to raise.
RE: LEHNQ
I can confirm, it was on 2/18/14. Volume that day was 109,275 shares.
Latest report on FHFAs attempt to create a Common Securitization Platform (essentially by taking F&F intellectual property).
http://fhfaoig.gov/Content/Files/EVL-2014-008.pdf
Wow volume has really dropped off, even with bids at .35+
SYMBOL VOLUME AVG VOL
LEHKQ-- 234 , 6,627
LEHLQ-- 427 , 6,450
LEHNQ-- 2,995 , 5,611
LHHMQ-- 0 , 10,417
They ended up with the middle ground (classified as commons) and not disallowed (what LBHI was pursuing).
I don't know if I would read into it like that.
The parties that were classified as commons had this position...
PRELIMINARY STATEMENT
Claimants Heidi L. Steiger (“Steiger”) and Steiger Associates L.P. (“Associates” and together with Steiger “Claimants” or the “Steiger Claimants”), by their undersigned counsel, hereby submit this memorandum of law in opposition to Debtors’ 254th Omnibus Objection to Claims (the “254th Objection”), which includes objections to Claim No. 32379 by Steiger and Claim No. 32380 by Associates (the “Claims”).
As set forth below, the Claims should not be reclassified as equity or disallowed because Claimants’ stockholdings in Debtors did not arise from voluntary purchases and did not arise out
of compensation received from a non-debtor Lehman entity. Rather, the Steiger Claimants were involuntary recipients of stock in Debtors in exchange for their previously held shares in
Neuberger Berman, Inc. (“NB”) at the time that Debtor Lehman Brothers Holding, Inc. (“LBHI”) acquired NB. Claimants’ shares of stock in NB were converted to shares of stock in LBHI as part of the acquisition agreement between the two entities – an agreement to which Claimants were not parties.
Moreover, more than 99% of the 321,502 LBHI shares of stock owned by Claimants at the time that Debtors filed for bankruptcy were received before LBHI acquired NB, resulting in the conversion of NB shares to LBHI shares. Most of Claimants’ shares initially were received by them when NB went public and issued shares of stock to its partners, such as Steiger, in exchange for their previously held partnership interests. Less than one percent of LBHI shares
received by Claimants occurred after Steiger’s employment with NB ended. Thus, the shares referred to in the Claims had nothing to do with compensation paid by a non-Debtor entity and
did not constitute compensation when Claimants received them.
In view of these circumstances, Debtors’ stated grounds for subordinating or disallowing the Claims are not sustainable. As a matter of law, the Claims are not subject to subordination
because they were not voluntary purchases and thereby their claims do not arise from purchases or sales within 11 U.S.C. §510(b). Further, these claims do not arise from Steiger’s employment
with a non-Debtor Lehman entity, but are more than 99% traceable to shares the Steiger Claimants received in NB that were involuntarily converted to shares LBHI when it acquired
NB.
Docket 44795 just posted.
Two employment related claims (32379 and 32380) for claim amount of ~$33M...
Ordered and signed by the judge-
"ORDERED the Employment-Related Claims listed on Exhibit 1 annexed hereto are hereby reclassified as Equity Interests (as such term is defined in the Modified Third Amended Joint Chapter 11 Plan of LBHI and its Affiliated Debtors [ECF No. 23023]) having the
same priority as, and no greater priority than, common stock interests in LBHI;
Docket is two pages... ADR process is moving at a quick pace. 6 mediators are working issues, several mediations sch. thru July & Aug.
Provides good insight as to what the estate is working on.
Docket 44788
Letter to Honorable Shelley C. Chapman Regarding Fifty-fifth ADR Status Report filed by Peter Gruenberger on behalf of Lehman Brothers Holdings Inc.. (Gruenberger, Peter)
Its july 16. It is a wed.
Yes, would be great if the website is released and they are open for new business. Fingers crossed that some of the value is realized shortly.
FWIW, the website progress has moved from 50% to 90%...
http://wmiholdingscorp.com/
The agenda for tomorrows hearing is now posted. Docket 44760
Notice of Agenda of Matters Scheduled for the Seventy-Fourth Omnibus and Claims Hearing on June 19, 2014 at 10:00 a.m. filed by Jacqueline Marcus on behalf of Lehman Brothers Holdings Inc.. with hearing to be held on 6/19/2014 at 10:00 AM at Courtroom 623 (SCC) (Marcus, Jacqueline)
Looks like mostly wrapping up LBI issues and ADR issues for LBHI to go after $$$ from faulty mortgages. Some items have been moved to july 16 hearing.
The reply posted on the dockets (2/26/14) stated-
"Response: The Trust Preferred Securities were issued by the non-Debtor entities identified above(the “Trusts”). Based on relevant prospectuses, the sole assets of the Trusts were certain
subordinated debt securities (the “Subordinated Securities”) issued by Lehman Brothers Holdings Inc. (“LBHI”). Under the Plan, claims against LBHI on account of the Subordinated Securities have been classified in LBHI Class 10B. Based on the 2013+ Cash Flow Estimates filed on July 23, 2013 [ECF No. 38954], it is unlikely that the Trusts will receive any Distributions from LBHI on account of their class 10B claims. LBHI is not aware of any other assets currently owned or expected to be realized by the Trusts."
IMO, our CTs trade because our trusts are "non-debtor entities." The fractional ownership of the trust is legally not in the bankruptcy (shares are tradable). Only the sub debt issued by LBHI is within the chap 11 and those distros are being reallocated.
The fact that the trust survives as a separate entity is good IMO and the fact that we did not agree to the POR also.
Wrong docket, this is from the SIPA proceedings.
The LBHI docket is the key one to watch (they are currently at #44638)-
http://dm.epiq11.com/LBH/Docket#Debtors=1906&RelatedDocketId=&ds=true&maxPerPage=25&page=1
Einhorn and Greenlight have been public about the competition from other hedgies setting up shop in the Caymans and Bermuda. I could see them thinking ahead and moving some portion back to the US (with M&A that allows low/zero fed. taxation) to gain back some market share. Additionally, would allow for a nice IPO to gather some p/e multiplier.
All speculation at this point, but fun to dream. GLTA JW
WHOIS registry info for wmiholdingscorp.com -
http://www.networksolutions.com/whois/results.jsp?domain=wmiholdingscorp.com
Looks like somebody wants ~24K shares at 2.75
WMIH : Grey Sheets WMI HOLDINGS CORP
Last: 2.75
Change: -0.04 (-1.43%)
Bid/Size: 2.75/23,800
Ask/Size: 2.77/1,000
Nice, just grabbed 1K at 2.62.
Volume is 227,337/202,000,000 = .001125 of all o/s trading today = no conviction. Retailers being shaken.
Guster,
Even if this does take a few more years and ends up with 1000+% return, where else are you getting that upside? Please share.
Today is close to lowest volume ever. I think Nov 27, 2013 was lowest... 11,292 total vol. that day.
I appreciated Troy's efforts and of course he (like all of us) wanted to see share price appreciation. Maybe he'll drop by and we can ask for any insight regarding the original equity comittee request.
Is Troy still around?
http://blogs.wsj.com/deals/2010/04/05/lehman-brothers-lives/
According to the article it was 153 acres of residential land
Likely a few to several million, Bakersfield land is not as hot as CA coastal land.
http://realestate.oodle.com/bakersfield-ca/land-for-sale/?s=pricerev
Another excellent read...
http://www.pwc.co.uk/assets/pdf/witness-statement-of-julian-jones.pdf
From the PWC statement-
"As the ultimate parent of the Lehman Brothers group, LBHI is an indirect creditor of many companies in the group and is the ultimate shareholder of all of the companies. Whilst dependent on the outcome of many events and variables, LBHI currently estimates that, by virtue of these indirect creditor claims and sharehold.ings, it will ultimately receive 87% of all distributions made by LBHI2. LBHI therefore has a very substantial economic interest in the outcome of the Sub-Debt Application insofar as it affects LBHI2.
Spot on and I'm not in the camp that TSY is going to cancel the warrants.
To be clear, truly hope I'm wrong and common does well also. If that happens, I'll be very happy with my pref holdings.
Big overhang for me on the commons is the warrants held by TSY. Those were always part of the deal (even if the 3rd amendment is removed).
Thinking that it may be a good point to make sure our trustee is advocating for the best CT outcome in this pool of sharks. I will be calling and emailing today.
Yeah, last is showing .01 on LEHLQ
Try to buy/sell...
Bid/Size: 0.32/2,500
Ask/Size: 0.44/2,500
Some funny biz going on. Shaking weak hands? Best JW