The involuntary chapter 7 may force LEHMAN to liquidate the remaining asset to accelerate the Trups. This may cause a bad effect to the preferred and common if there is a need to capitalize a new business.
Yeah. So what?
Why should CT's care? I just want the money owned CT's.
How about this, a transfer of monies(cash) owed to CT's to preferred and common in exchange for "new stock", will benefit preferred and common, reduce-not eliminate- the need for dilution in the future.