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2018 should be a year of transformation and value growth at Impac...
These retained portfolio values rise as i-rates increase:
- Servicing rights 3Q value ~$159 million
- servicing portfolio continues to grow, soon will be nearing almost $10 million per quarter in servicing income in 2018
- September 30, 2017, increased servicing portfolio from the end of the second quarter by 7%, bringing the portfolio to approximately $15.7 billion
These further strengthen the balance sheet:
- Beginning in 2018, the contingent consideration will no longer be on Impacs balance sheet
Next steps the company should undertake IMO-
- Need to complete non-agency securitization when the return to company is best.
- expand into areas that are easy to originate (highest returns)
- Need to re-structure o/s prefs so all future value flows to common
Once the retained portfolio is generating sufficient revenue to cover operating costs+, the company should resume dividends.
Link to transcript from the last Q call:
https://seekingalpha.c...
Looks like some old co out of TX
http://www.secinfo.com/dr6wd.4fdTq.htm
http://www.otcmarkets.com/stock/THLM/quote
Take the $1000 and open an acct at a different brokerage. Then use the 1000 to purchase some CTs.
You'll get more than 2, IMO
GLTU
So your paying $1000 for two CT certs?
Appears to be no sellers
Zero ask showing for the LEHKQs
LEHKQ : LEHMAN BROTHERS HLDG CAPITAL TRST III
Last: 0.03
Change: -0.031 (-50.82%)
Bid/Size: 0.03/10,000
Ask/Size: 0.00/0
Volume: 1,030
LEHNQ : OTC LEHMAN BROTHERS HOLDINGS CAPITAL TRUST VI
Last: 0.031
Change: -0.035 (-53.03%)
Bid/Size: 0.07/10,000
Ask/Size: 0.1899/5,000
Volume: 1,330
LHHMQ : OTC LEHMAN BROTHERS HOLDINGS INCORPORATED
Last: 0.095
Change: +0.015 (18.75%)
Bid/Size: 0.08/15,270
Ask/Size: 0.21/2,500
Volume: 2,000
LEHLQ : LEHMAN BROTHERS HOLDINGS CAPITAL TRUST IV
Last: 0.08
Change: 0.00 (0.00%)
Bid/Size: 0.08/10,000
Ask/Size: 0.50/4,900
Volume: 0
Read the prospectus, the CTs are
"The preferred securities are expected to be ready for delivery in book-entry form only through The Depository Trust Company on or about March 17, 2003."
No certificates were ever issued.
https://www.sec.gov/Archives/edgar/data/1053521/000104746903008715/a2105395z424b2.htm
Thanks Argus, tried to open the .pdf links in the announcement and I keep getting this message...
"Access Denied - Announcement 1829Y not yet released."
Thanks JOVI
Pg 37...
Summary
The Company estimates that Total Post-D13 CFE Cash From Operations will be $3.9 billion, an increase of $2.1 billion compared to the Post-D12 CFE. The increase was primarily driven by (i) a $1.74 billion increase in estimated recoveries in Other related to the Citibank Settlement (these litigation recoveries were excluded from prior estimates); (ii) a $123 million increase in estimated recoveries related to the LUK and LPTSI Sale, net of an adjustment for claims and receivables from LBHI and Other Debtors owned by LUK and LPTSI; and (iii) a $107 million increase in estimated recoveries from Non-Controlled Affiliates. Cash activities between April 7, 2017 and October 5, 2017 included (i) the collection of $1.1 billion of recoveries from Non-Controlled Affiliates, primarily driven by recoveries from LBHI2 and Lehman Brothers Limited, (ii) the monetization of inventory of approximately $0.6 billion, primarily in the Private Equity/Principal Investments and Derivatives portfolios, (iii) the receipt of $0.5 billion from the LUK and LPTSI Sale in Other, and (iv) operating expenses of $90 million, driven by professional fees related to the Company’s claims mitigation and litigation activities. Of the $2.7 billion of remaining Estimated Net Receipts shown in the Post-D13 CFE, the Company anticipates that approximately 91% will be collected by the end of 2018.
If Judge Chapman allows the substitution, suspect the ECaps will challenge in the UK.
Meanwhile, how much does the Cayman JV stand to collect for LBHI (via LBHI2), Elliot, King Street from the LBIE surplus funds?
LBHI joined the JV in 2013 and contributed all its holdings of LBIE sub notes and its holdings of LBIE pref equity (owns 100% via LBHI2).
Can LBHI, Elliot, King Street collect LBIE surplus funds based on sub-notes and LBIE pref equity while CTs are in default and covenants intact?
http://document.epiq11.com/document/getdocumentbycode/?docId=2440840&projectCode=LBH
Our Cap Trust trustees asleep at the wheel?
What's been going since 10am est?
I like law too. Contracts with covenants and guarantees even in bankruptcy. We should not have been waiting this long IMO
I'll join the chant too UK UK UK ;^)
Best JW
Our trusts are legally intact and covenants enforceable, IMO.
From pg 20 of the prospectus...
"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.
The guarantee, when taken together with Lehman Brothers Holdings' obligations under the junior subordinated debt securities, the indenture and the declaration, including its obligations to pay costs, expenses, debts and liabilities of the trust, other than those relating to trust securities, will provide a full and unconditional guarantee on a subordinated basis by Lehman Brothers Holdings of payments due on the preferred securities. See "Effect of Obligations Under the Junior Subordinated Debt Securities and the Guarantee."
Important Covenants Of Lehman Brothers Holdings
In the guarantee, Lehman Brothers Holdings will covenant that, so long as any trust securities remain outstanding, if:
•
there shall have occurred any event of default under the indenture,
•
Lehman Brothers Holdings shall be in default with respect to its payment of any obligations under the guarantee, or
•
Lehman Brothers Holdings shall have given notice of its election to defer interest payments and shall not have rescinded such notice, and while such interest is deferred,
then Lehman Brothers Holdings will not, and will not permit any subsidiary to:
•
declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of Lehman Brothers Holdings' capital stock, or
•
make any payment of principal, interest or premium, if any, on or repay, repurchase or redeem any debt securities of Lehman Brothers Holdings that rank on a parity with or junior in interest to the junior subordinated debt securities or make any guarantee payments with respect to any guarantee by Lehman Brothers Holdings of the debt securities of any subsidiary of Lehman Brothers Holdings if such guarantee ranks on a parity with or junior in interest to such junior subordinated debt securities, other than
•
dividends or distributions in common stock of Lehman Brothers Holdings,
•
payments under the guarantee made by Lehman Brothers Holdings in respect of the trust securities of the trust,
•
any declaration of a dividend in connection with the implementation of a shareholders' rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto, and
•
purchases of common stock related to the issuance of common stock or rights under any of Lehman Brothers Holdings' benefit plans. "
https://www.sec.gov/Archives/edgar/data/1053521/000104746903008715/a2105395z424b2.htm
From the 8k...
Note 8 – Due from/to Affiliates (continued)
(c) Settlements with Non-Controlled Affiliates
Joint Venture to Facilitate Resolution of LBIE Claims
On January 31, 2014, Lehman Brothers Holdings Intermediate 2 Ltd. (“LBHI2”), a Non-Controlled Affiliate, LBHI, and Elliott Management Corporation and King Street Capital Management, L.P. (together, the “Funds”) entered into definitive documentation and consummated a joint venture to facilitate the resolution of LBIE claims (the “Joint Venture”):
• LBHI2 contributed to the Joint Venture its senior claim of GBP 38 million (“Senior Claim”), subordinated claims of GBP 1.25 billion (“Sub Debt”), and a portion of the economic interest in its preferred equity (“Preferred Equity”) in LBIE.
If LBIE makes distributions on the Preferred Equity before aggregate distributions from the Joint Venture to the Funds and LBHI2 have reached GBP 2.2 billion (plus interest), then, in certain circumstances, LBHI2, Lux Finance and LBHI shall be obligated to make payments to preserve the economic terms of the transaction as if 100% of the Preferred Equity proceeds had been transferred by LBHI2 to the Joint Venture.
Receivables from LBHI2:
• Luxembourg Finance Sarl (“Lux Finance”) and LB Scottish Holdings LP3 (“SLP3”) have receivables from LBHI2 of $749 million (including $19 million of accrued interest) and $77 million (consisting of exclusively accrued interest), respectively. Accrued interest was computed through the date LBHI2 entered administration.
• As recoveries on these receivables are contingent on the resolution of a number of complex legal disputes surrounding distributions from LBIE, the Company has not recorded an estimate of future recoveries on the subordinated receivables from LBHI2 of $6.139 billion (“SLP3 Sub Rec”), nor any additional accrued interest that may accrue subsequent to LBHI2’s administration date at Lux Finance and/or SLP3. The Company has reserved in full for the SLP3 Sub Rec.
• Currently, LBHI is the indirect parent and the beneficiary of any proceeds paid pursuant to the SLP3 Sub Rec.
• In addition, the Company has receivables from certain Non-Controlled Affiliates that have claims against LBHI2.
Agreed, will the LBIE surplus pay the LBIE prefs and jr notes ultimately held by LBHI?
We should know by ~1Q18 IMO
Nothing in this distro for 10B...
Docket # 56298
Filed Sep 28 2017
Notice of Distribution : Notice Regarding Thirteenth Distribution Pursuant to the Modified Third Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. and Its Affiliated Debtors (related document(s)[23023]) filed by Garrett A. Fail on behalf of Lehman Brothers Holdings Inc.. (Fail, Garrett)
http://document.epiq11.com//document/getdocumentbycode/?docId=3167448&projectCode=LBH
Currently no sellers under $10.
Looks like someone jumped in w/ask of .507
LHHMQ : OTC LEHMAN BROTHERS HOLDINGS INCORPORATED
Last: 0.1079
Change: +0.0269 (33.21%)
Bid/Size: 0.09/10,000
Ask/Size: 0.507/2,500
Volume: 45,400
Current Bid/ask on LHHMQ (pari w/LEHNQ)..
LHHMQ : OTC LEHMAN BROTHERS HOLDINGS INCORPORATED
Last: 0.1079
Change: +0.0269 (33.21%)
Bid/Size: 0.09/10,000
Ask/Size: 10.39/100
Volume: 45,400
I saw the settlement amount, but its unclear what RMBS remains.
SASCO was the Lehman securitizing entity, but those trusts were largely not held at SASCO
https://www.housingwire.com/articles/40327-rmbs-trustees-accept-24-billion-toxic-mortgage-settlement-from-lehman-brothers
As the Wall Street Journal notes:
Before its collapse, Lehman purchased and funneled millions of residential mortgages to its securitization subsidiary, which then bundled the loans into marketable financial products. The subsidiary, known as Structured Asset Securities Corp or SASCO, established hundreds of trusts and special-purpose vehicles that in turn issued the securities to pension funds, insurance companies and other institutional buyers.
And this settlement covers investors that bought into the SASCO trusts and others, which, in some cases, included mortgages with faulty underwriting.
I did read it and now I see the LBI note on your comment. Sorry.
I took a look at both LBI and LBHI presentations together hoping to get a better picture of what remains. Still digesting the info and hopefully we'll hear more from tomorrows presentation.
Anyone attending tomorrows presentation?
Newflow,
This doc is for LBI (SIPA), not LBHI. The $123b was the beginning amount. Now LBI has ~$550M left in admin.
The LBHI estate has about $7B left (see link below)
http://document.epiq11.com/document/getdocumentbycode/?docId=3159395&projectCode=LBH
From the document..
Approximately $7 billion of assets remain in the Estate, including cash (much of which is reserved for disputed claims), net of future operating expenses and excluding potential litigation recoveries
Significant contingent and unliquidated claims remain unresolved estimation and other strategies will be required to resolve these claims
450+ claims remain unresolved seeking over $28.6 billion, and the resolution of which will likely require substantial judicial resources and Court time
–Remaining matters:
Big Banks –Citi and Credit Suisse
RMBS related issues
Other Matters –dissolution of non-debtor affiliates and guaranty claim issues
Link..
http://document.epiq11.com/document/getdocumentbycode/?docId=3159395&projectCode=LBH
Last page..
Conclusion
Since the last Plan Administration Update, approximately $6.8 billion has been distributed and approximately $7.9 billion of claims filed have been resolved
These cases remain “mega-bankruptcy” cases with approximately $7 billion of remaining assets, including cash (much of which is reserved for disputed claims), net of future operating expenses and excluding potential litigation recoveries and over 450 unresolved claims
In addition to the ongoing trial over the valuation of Citi’s claim, a trial concerning the estimation of the RMBS Private Label claims is scheduled to commence on October 16, 2017, and, absent a settlement, the Court will need to conduct a massive trial over the valuation of Credit Suisse’s claims
While the Plan Administrator continues to drive towards the completion of its mandate under Lehman’s Chapter 11 plan, additional judicial resources will be required to enable the Plan Administrator to enhance creditor recoveries and facilitate the final administration of these estates
The Plan Administrator continues to maintain a robust and experienced litigation platform and is prepared to strike the necessary balance considering the value of fair compromise, the cost of litigation, the benefit received by the Estate’s creditors from timely resolution and the goal of ensuring that all creditors are treated fairly
Regarding rank and non-discharge: 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.
The guarantee, when taken together with Lehman Brothers Holdings' obligations under the junior subordinated debt securities, the indenture and the declaration, including its obligations to pay costs, expenses, debts and liabilities of the trust, other than those relating to trust securities, will provide a full and unconditional guarantee on a subordinated basis by Lehman Brothers Holdings of payments due on the preferred securities. See "Effect of Obligations Under the Junior Subordinated Debt Securities and the Guarantee."
https://www.sec.gov/Archives/edgar/data/1053521/000104746903008715/a2105395z424b2.htm
IMO, the CTs trust has kept the trust notes from being transferred since they were issued in 2003 to 2005 ("old and cold") and the CTs rank with most sr pref.
Also, they are non-dischargable. Period, even in bk proceedings.
Last, LBHI owns 3% of each Capital Trust. From the LEHKQ prospectus..
"The preferred securities will always constitute approximately 97% of the liquidation amount of all issued securities and the common securities will constitute the balance. On March 17, 2003, the liquidation amount of preferred and common securities will be $309,278,375 ($300,000,000 of preferred securities and $9,278,375 of common securities). If the over-allotment option is exercised in full by the underwriters, the liquidation amount of preferred and issued securities will be $355,670,125 ($345,000,000 of preferred securities and $10,670,125 of common securities).
The property trustee will hold title to the subordinated debentures for the benefit of the holders of the preferred securities and, as the holder of subordinated debentures, the property trustee will have the power to exercise all rights, powers and privileges of a holder of subordinated debentures under the subordinated indenture. In addition, the property trustee will maintain exclusive control of a segregated non-interest bearing bank account to hold all payments made in respect of subordinated debentures for the benefit of the holders of the preferred securities.
For so long as the preferred securities remain outstanding, Holdings will covenant, among other things, to maintain 100% ownership of the common securities of the trust, to cause the trust to remain a statutory trust and to use its commercially reasonable efforts to ensure that the trust will not be an "investment company" for puposes of the Investment Company Act of 1940 (the "Investment Company Act")."
Prospectus is a good read and contract.
http://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=LEHMQ
Sr and sub claims changing hands daily, so only those debt holders that were holding 18 months prior to Chap 11 and still holding...
3. Special Rules in Bankruptcy
A couple of special, and somewhat complicated, rules apply when a corporation is a debtor in bankruptcy.
If a 50% ownership change is expected to result during the bankruptcy proceeding because of the transfer of stock to the former creditors, an exception under Code Section 382(l)(5) may offer some protection. Section 382(l)(5) provides that the Section 382 Limitation will not apply to a corporation if (1) the corporation, immediately before the ownership change, is under the jurisdiction of a court in a Title 11 or similar case, and (2) the shareholders and creditors of the old corporation own at least 50% of the total voting power and value of the stock of the corporation after the ownership change as a result of being shareholders and creditors before the change. Stock transferred to such creditors counts only if it is transferred with respect to “old and cold” indebtedness; that is, if the indebtedness (1) was held by the creditor for at least 18 months before the date of the filing of the Title 11 case, or (2) arose in the ordinary course of the trade or business of the old corporation and is held by the person who at all times held a beneficial interest in that debt. This last rule prevents debtor corporations who have a significant portion of their outstanding debt acquired by vulture funds within 18 months of the bankruptcy petition date from making use of the Section 382(l)(5) protection.
http://www.gibbonslaw.com/ownership-changes-and-their-impact-on-net-operating-losses-tough-to-avoid-and-hard-to-control-05-05-2009/
RE: LBIE. Either way Elliot Street is positioned to gain as Sr Creditor UK or as a subordinate. Actually both.
https://www.bloomberg.com/news/articles/2017-03-14/paul-singer-said-to-reopen-flagship-hedge-fund-to-new-capital
RE: Barclays U.S. investment banking, they need to spin it back out and have LAMCO purchase it. IPO would unlock value and make good use of NOLs. While attracting some of the US talent back.
Market cap for Impac has nearly doubled too from $199M last year to ~$355M
Yes, still trading. Current bid/ask from scottrade...
LEHNQ : OTC LEHMAN BROTHERS HOLDINGS CAPITAL TRUST VI
Last: 0.0734
Change: 0.00 (0.00%)
Bid/Size: 0.0743/23,200
Ask/Size: 0.17/5,351
Volume: 0
52 week high: 2.48
52 week low: 0.0115
As of 11:47:52 AM ET 5/12/2017
IMO, It's great news. Impac is taking steps to further shore up the balance sheet.
Yes, good summary article here...
https://seekingalpha.com/article/4064539-impac-mortgage-moves-2017-strategy
No, if only a few large holders are out there they all may go grey at some point soon.
Just means not enough tradable shares to make a market.
LEHKQ only CT I see w/o bid/ask
LEHKQ
Last 0.06
0.00
0.00
Vol. 6,200
bid 0.00
ask 0.00
LEHLQ
last 0.09
0.00
0.00
vol. 11,657
bid 0.081
ask 0.20
LHHMQ
last 0.10
0.00
0.00
vol 1,000
bid 0.10
ask 0.2116
LEHNQ
last 0.1111
-0.0001
-0.09
vol 2,060
bid 0.1111
ask 0.2499
LEHNQ : OTC LEHMAN BROTHERS HOLDINGS CAPITAL TRUST VI
Last:0.1112
Change: +0.0004 (0.36%)
Bid/Size: 0.1112/8,700
Ask/Size: 0.2198/3,900
Volume:8,800
Economic interest in OBS is non-transferable. Have to hold, no choice if you already have them.
Next phase would need approval by the court. LBHI currently has an A&M BOD focused on asset sales and recoveries.
To see a copy of the Order Authorizing the Debtors to Retain Alvarez & Marsal North America, LLC to Provide the Debtors a Chief Restructuring Officer and Additional Personnel, and to Appoint the Chief Restructuring Officer, please click here. [Docket #2278]
http://portal-redirect.epiq11.com/LBH/document/GetDocument.aspx?DocumentId=1315898
Possibly time for a new board of directors and key execs. IMO
No, I did not see any volume on LEHLQ. I called scottrade desk for current bid/ask
LEHLQ
Bid is .12
Ask is .20
Agreed Jersey, the only window to save Lehman was in fall of 2008.
Now, most the assets have been monetized to pay creditors.
What remains could be a new start...