Lehman Brothers Financial SA (LEHNQ)

[mellowbird]

> No cancelation of debt. No cancelation of debt. No COD, No COD.

2good, I've seen you write this before, but I have never understood it. Would you mind explaining your position in more detail? What you wrote raises some questions for me.

> LEHMAN is not obligated to pay remaining debt if all asset is prorated
> to creditors. No need to cancel either because there is nothing left
> to pay them. The remaining debt will just become uncollectible.

I don't get it. Lehman is selling off their assets to pay creditors. But if they cannot pay them in full, there will be as you say uncollectable debt left over that will have to be cancelled, and as I understand it, this will result in COD income.


> Understand the mechanics. All asset is owned by the creditors so new
> investors must come in to capitalize ,
> The selling of the 2.5B intercompany claim is just one way of doing
> it. It will pay creditors without selling the asset.

Again I am lost. By selling the claim, isn't LBHI selling one of their assets? But then you say this will pay creditors WITHOUT selling the asset. This sounds like a contradiction to me.


> The new business will be the combination of NOL and the new Capital
> investments.

The idea that there will be a newco with NOLs is one of the premises I have lost faith in. For reasons we are discussing here, it seems to me the NOLs will be wiped out. But also, the plan seems to be for a total wind down. It even says this on the Alvarez and Marsal website:

http://www.alvarezandmarsal.com/financial-services

A&M say they have led the restructuring of WaMu and the wind down of Lehman. Can you or someone please point me to where it says there will be a newco? Thanks.