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Hello AZ,
Regarding your mail #572651, I need to contact you. I have discussed with you earlier, when I purchased Junior bonds VBB3 and WAA4. What are the new JPM cusips for these? TDA have no info about the new cisips. Thanks marina123
One possibility- wait for the 10 year period ending - claim there is no other document available- keep only the finalized settlement papers - make the settled payments - use Enron shredders - No more questions - case closed.
GLTA IMO
Great line of thought AZ.
I was always wondering, why the TPS group, handed over control of WMIH to KKR et al., What if there is a deal (undisclosed) between LTI Trust and KKR, regarding the A & B series, preferred offering, and subsequent conversion, to WMIH common shares?
GLTA
Thank you AZ for all the good work. You are the 'MAN'.
AZ.... Greetings!
You often talk of "Restricted Cash" and its movement.
Can you explain the "Restricted cash" and give a ball park value of it? What is the "movement ", and "from where to where"?
Thanks!
In the 124 page document, there are about 37 pages of the Claimer list, around page 100 of 124,.
There are more than 1800 Eligible Claims listed in the Schedule, involving such names as Fidelity etc.,. Most of them are Institutions and Mutual Funds. Most probably, the % Return etc., have already been mutually agreed. The Rapid Settlement presently proposed is only an effort on consolidation of the Claims.
IMO
GLTA
Does this accelerated settlement apply to OBS Escrow Markers, LHHMQ,LEHLQ,LEHKQ,LEHNQ?
If not, what will happen to them?
GLTA
IS IT FULL MONTY?
lEHMAN BROTHERS UK CAPITAL FUNDING lP ("lP I")
EUR 225,000,000 FIXED RATE TO CMS-LiNKED GUARANTEED NON-VOTING, NON-CUMULATIVE PERPETUAL PREFERRED SECURITIES ("lP I PREFERRED SECURITIES")
ISIN XS0215349357
3.8.1 LP 1- EUR 225,000,000 Fixed Rate to CMS-Linked Guaranteed Non-voting, Non-Cumulative Perpetual Preferred Securities;
3.8.2 LP II - EUR 250,000,000 Euro Fixed Rate Guaranteed Non-voting, Non- cumulative Perpetual Preferred Securities;
3.8.3 LP III - EUR 500,000,000 Fixed / Floating Rate Enhanced Capital Advantaged Preferred Securities;
3.8.4 LP IV - EUR 200,000,000 Euro Fixed Rate Enhanced Capital Advantaged Preferred Securities; and
3.8.5 LP V - USD 500,000,000 Fixed Rate Enhanced Capital Advantaged Preferred Securities.
Although this specific notice is addressed and has been distributed (to the extent possible) to the holders of the LP I Preferred Securities with lSIN XS0215349357 issued by LP I, this notice contains information relevant to each of the Partnerships and is therefore to be read as a composite update to enable holders of Securities issued by each of the Partnerships to understand the position applicable to all of the Partnerships. Separate notices (in materially the same form) have been distributed to holders of Securities issued by each of the Partnerships.
IMO...Read this morning...Make your own DD.....The earlier $2.53 per CT($25) calculation) need to be reviewed...
GLTA
2.88 --->>> 2.53 because of euro to pound conversion ??????
In the Notice of today (!!May2018) at the top, we can find the 225M.
IMO Make your own DD.
GLTA
3.5.1 Lehman Brothers UK Capital Funding LP ("LP I")........... ..500M
3.5.2 Lehman Brothers UK Capital Funding II LP ("LP II")....... .....250M
3.5.3 Lehman Brothers UK Capital Funding III LP ("LP III")..... .......500M
3.5.4 Lehman Brothers UK Capital Funding IV LP ("LP IV")............200M
3.5.5 Lehman Brothers UK Capital Funding V LP ("LP V"),..... .......500M
TotL.................1950M
225/1950 -------->> 11.5% ......>> $2=88 per $25
IMO All the info gathered from Google. " Lehman Brothers UK Capital Funding II LP" etc.,.
Verify and disclose any errors
GLTA
Thanks AZ!
Greetings AZ!
What in your estimate is the Ratio (in $ value) of the DB Trust(settled in Sep 2017) to the other Trusts listed in your latest post?
Thanks.
How an ETF is Created
An ETF has many advantages over a mutual fund, including costs and taxes. The creation and redemption process for ETF shares is almost the exact opposite of that for mutual fund shares. When investing in mutual funds, investors send cash to the fund company, which then uses that cash to purchase securities and, in turn, issues additional shares of the fund. When investors wish to redeem their mutual fund shares, they are returned to the mutual fund company in exchange for cash. Creating an ETF, however, does not involve cash.
The process begins when a prospective ETF manager (known as a sponsor) files a plan with the U.S. Securities and Exchange Commission to create an ETF. Once the plan is approved, the sponsor forms an agreement with an authorized participant, generally a market maker, specialist or large institutional investor, who is empowered to create or redeem ETF shares. (In some cases, the authorized participant and the sponsor are the same.)
The authorized participant borrows stock shares, often from a pension fund, places those shares in a trust and uses them to form ETF creation units. These are bundles of stock varying from 10,000 to 600,000 shares, but 50,000 shares is what's commonly designated as one creation unit of a given ETF. Then, the trust provides shares of the ETF, which are legal claims on the shares held in the trust (the ETFs represent tiny slivers of the creation units), to the authorized participant. Because this transaction is an in-kind trade — that is, securities are traded for securities—there are no tax implications. Once the authorized participant receives the ETF shares, they are sold to the public on the open market just like stock shares.
When ETF shares are bought and sold on the open market, the underlying securities that were borrowed to form the creation units remain in the trust account. The trust generally has little activity beyond paying dividends from the stock, held in the trust, to the ETF owners, and providing administrative oversight. This is because the creation units are not impacted by the transactions that take place on the market when ETF shares are bought and sold.
Note: Copied from Investopedia
The $600M or so is the Dividend received from FDIC by the DB as WAMU TRUSTEE. IMO, it belongs to the Escrows. The important question is the "duration " corresponding to this $600M dividend. That will give a clue as to the total assets returning.
IMO GLTA
At $18 per share, the 100M NSM shares mean a marketcap of 1.8B; in addition WMIH is assuming about 1.7B of NSM debt. Where is this total 3.5B coming from?
GLTA
What are the components of OBS:
[1] About 700M LEHMQ common shares
Can somebody complete the list?
Thanks.
I just learnt, the 2.1% payment is for some other Lehman related Settlement. Sorry for the confusion.
GLTA
Was there a recent 2.1% cash payment, for any $25 face value Lehman Preferred security?
GLTA
Let us take the case of TSTRQ:
Some months back the TSTRQ shares vanished from individual accounts. When contacted the brokerage house(s) brought in the name of an AGENCY(I do not remember the name). As per the AGENCY advice, the TSTRQ shares were removed from the account display. They further told, the share holding positions will remain in the Brokerage records. If a future payment for TSTRQ materializes, the individual shareholders will get paid as per THIS record.
GLTA
Tender Offer:
Your response, will analyze this alternative and the legal position.
Lehman creditor claims pending are reported as 208B. The NOL value for Lehman is believed to be 65B. The cash value of the NOL at 35% rate is about 22B.
Let us say a creditor group
[1] gives for the CTs 30% offer (for the 1.2 Billion total) to the amount of 360 Million
[2] gives for the Preferreds 20% offer (for the 10 Billion total) to the amount of 2 Billion
[3] gives for the common shares an offer 0f $5 per share(for the 700 Million shares total) to the amount of 3.5 Billion.
Their total new investment i Lehman is 0.36 + 2 + 3.5 = 5.86 Billion.
There is an ownership change now in 2015. They wait for three years for IRS NOL compliance and do additional mergers etc., after 2018.
In this way, they get the entire remnant assets of Lehman and the NOL cash value of 22B (for an investment of 5.86Billion now).
Feel free to correct the figures as needed and share your thoughts in a cool way.
All IMO. Make your own DD.
GLTA
Joe:
"Senior unsecured noteholders that opted for the convenience claim were put in class 6a. We accepted 26% on the dollar to settle our claims early."
What type of Guarantee Clause, the Class 3 and Class 6 have? How do they compare with the Guarantee the CTs have?
GLTA
WAHUQ..... Got cash(yet to be completed) and no shares in the NEWCO ... WMIH...
WAHUQ in the WAMU case is said to be the equivalent of Lehman CTs. WAHUQ took a haircut in the WAMU distributions. How much percentage? I do not remember now.
This is something to make note of and discuss.
GLTA
Somebody (BNYM or ...) is keeping track of the CT dividend record dates and the corresponding period CT owners lists. Accordingly, if some CT holder has sold out in the interim, he will be eligible for the dividend for the period of holding, whenever the past six years dividend gets paid.
IMO
GLTA
Observations based on other posters:
[1] Somebody (BNYM/ or ..), keeps track of the record date and the CT holder info on corresponding record date, for the past 6 years(since default). This will do natural justice for those who sold out in the interim.
[2] The Lehman entity/JPM agreement will pave the way for early NEWCO formation.
[3] The moment any old divvy plus interest is paid to an ordinary Joe type CT holder, the CT price will begin inching up to the par value.
IMO
GLTA
Now that the court has approved the motion regarding the 560M distribution, we can conjecture what it means to the CTs.
I may be completely wrong but I will set the ball rolling so that posters with more info can do the corrections.
560M to be distributed to 11 Billion claim. This is a rough ratio of 20 between total claim and current distribution.
Per CT the claim is around $35(FV+divvies+int). This means each CT can expect a distribution of $1.75 or 175 cents.
Now make the corrections.
GLTA
Hestheman and toogood:
The following reference, covers the Creditor recovery rates from a historic perspective. The summary indicates the recovery rate is around 40% to 50%. In Lehman case this translates to dollar amounts of between 160B to 200B.
The creditors have so far received around 80B. This means they will deeply cut into the shares of NEWCO.
I prefer to refrain from the "satisfied in full" debate.
In the ultimate long term perspective, when the NEWCO emerges, the share split,IMO, may be around 86% (Creditors),11% (preferreds including CTs) and 3% (commons).
When the NEWCO grows to a 20B market cap organization, the CTs receive around 20 cents on a dollar and the commons get around 90 cents per share.
All IMO. Make your own DD. Critical comments welcome.
http://www.kc.frb.org/publicat/econrev/pdf/12q2Mora.pdf
GLTA
hestheman:
Thanks for your response. "Toogood" is just a name and reference, for me to refer to a particular thought conveyed in the post. I only responded to the ideas in the post. Who originated a particular idea first, in the chain of posts, is hard to say, when there are five digit long post numbers. If you are the originator of any worthwhile idea, you deserve the credit.
It will be your service to the board, if you can summarize your thoughts on the NOL topic and future share split ratio(s). Repetition is not always a sin; it helps the newcomers.
Have a good day!
GLTA
toogoodfella:
"The 51 to 49 percent rule cannot and do not need to be applied specially because the whole thing is stil 100 percent LBHI."
You may be right. If the Creditors are "old & cold" (creditor document dated more than 18 months prior to BK filing date) then the split ratio could be a toss up. Remember, 80B dollar payout to creditors comes to only about 20 cents on a dollar. This means the total debt is about 400B.
The question is how much of the creditors are old and cold?
All IMO. Make your own DD. Also share your thoughts on the old/cold situation.
GLTA
toogood:
"The term "Available Cash" have its own meaning in the POR and it says all asset that can be sold into cash is considered "Available Cash"
IMO, the administrator will go on selling the assets and pay the allowed claims prorata. At the end,there will be a few non-saleable items such as NOL, goodwill, brand name etc., Then finally, the reorganization shell game can occur. In this process, the present shareholders of all hues and colors (including CTs) will get either 100% or 51% of the NEWCO shares. We do not know when the NEWCO will emerge and how the share distribution will be (among commons, preferreds and CTs).
All IMO. Make your own DD.
GLTA
Thank you wayne49.
{...
[8] Beneficiaries after restructuring:
WAMU Old commons / old preferreds / PIERS
LEHMAN Old commons / old preferreds / CTs / other motions that moved debt to class 12 or CTs/creditors and OBS
[9] Old creditors ..... WAMU NONE .... LEHMAN Yes (class 1-11) TBD ...}
Items [8] and [9] IMO are important.
What is the $value (ball park) of claims in [8] and [9]?
[8] Beneficiaries after restructuring:
LEHMAN .... / other motions that moved debt to class 12 or CTs/creditors and OBS
[9] LEHMAN (class 1-11) TBD (ball park)
OBS is the common kitty for all beneficiaries. Is this correct?
GLTA
I plan to compare the WAMU and LEHMAN cases.
I know the following details:
[1] NOL ..... WAMU 6B .... LEHMAN 55B
[2] Shares common ..... WAMU 1.7 B .... LEHMAN 700M
[3] Preferreds ..... WAMU 7.5B .... LEHMAN ?????
[4] TRUST ..... WAMU PIERS ??? .... LEHMAN CTs 1.2B
[5] Equity committee ..... WAMU YES .... LEHMAN ???
[6] Illiquid Assets ..... WAMU "Mystery" .... LEHMAN 25B
[7] Perpetrators .WAMU JPM/FDIC/ 2008 crisis .. LEHMAN 2008 crisis
[8] Beneficiaries after restructuring:
WAMU Old commons / old preferreds / PIERS
LEHMAN Old commons / old preferreds / CTs/ ??????
[9] Old creditors ..... WAMU NONE .... LEHMAN ?????
Can somebody fill up the dark spots (???) marked above?
Thanks.
GLTA
This is a two way gift. The equity holders gift their NOL asset. The guaranteed note holders, in their enlightened self interest agree for the "gift away". In the long run both classes get the benefit.
Will ALL the pre-BK holders get the benefit is another question.
GLTA
Camaro4me:
I had a look at the claim values shown by another poster, sometime back. The 300M face value(Lq and Kq) have claims around 312M each. The LEHNQ has a claim of 234M. This, for me, appears as 225M face value plus 9M interest. On this basis, I tend to think, the total number of official LEHNQ is 9M (not 8M).
So, I believe the LEHNQ is on par in value as the other three CTs.
You can as well come to a similar conclusion with LHHMQ as reference.
Share count:LHHMQ(16M);LEHLQ(12M);LEHKQ(12M).
All IMO. Make your own DD.
GLTA
I should have said "dates of default".
What are the claims for LHHMQ (16M), LEHKQ (12M) and LEHLQ (12M)?
If we compare these numbers with the claim for LEHNQ, then there will be more clarity.
If there is any accrued interest included in the claim then the date(s) of issue need to be considered.
9 Million instead of 8 Million. Dilution by 12.5%. Price discount (relative to the other CTs)up to 15% is reasonable.
Cotton Post: "if I loan you $100 dollars to start your business and I agree that if you pay me back $21, I am satisfied in full upon receipt of my $21 dollars. You have meet the conditions of our legal and binding contract. However, if you give me an extra $4 dollars because your business is doing very well, for a total of $25 dollars, that is on you! You could have legally walked away at $21.
"
It could be another way too. The additional 15B payment to Creditors may not just be a gift. In the "man eat man" market world there is no room for any gift. Instead, the percentage of Newco stock the Creditors will be granted may get correspondingly REDUCED.
GLTA