Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

Jovi, From the Lehman disclosure statement;

3. Tax Impact of the Plan on the Debtors

a. Cancellation of Debt

The IRC provides that a debtor in a bankruptcy case must reduce certain of its tax attributes – such as current year NOLs, NOL carryforwards, tax credits, capital losses and tax basis in assets – by the amount of any cancellation of debt (“COD”) incurred that arises by reason of the discharge of the debtor’s indebtedness.

The creditor's did not accept the "estimated" recovery percentages which also said that recovery for 10B would be zero. The creditors approved the plan because realistically those estimate were conservative and what they reasonably could expect as a minimum recovery.

Why do you think they called it an "estimated" recovery? The distributions so far have exceeded those estimates. If YOU think they agreed to something less, how do you explain that they are still getting distributions?