Lehman Brothers Financial SA (LEHNQ)

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Three events took place with LBHI and in the following order:

1) Capital Disqualification Event - prior to 9/15/2008

Why? The Feds were onsite with Lehman Brothers prior to 9/15/2008.

Remedy: "Preferred Securities will be redeemed"

Note: Credit Suisse asserted this right in bankruptcy court.

2) Trigger Event - 9/15/2008

Remedy: "substitution of the Preferred Securities" or wait on UK surplus.

Note: "No Preferred Securities Substitution will take place and the Holders will continue to hold their Preferred Securities and all their rights thereunder if prior to the Substitution Date, a winding-up of LBHI occurs."

3) RSM Liquidation of the General Partner - 2017

Remedy: "Liquidation Distribution out of the assets of the Issuer legally available for distribution" or wait on UK surplus.

I think that the FCA will be looking at these events with respect to LBHI's motion due by November 30, 2017! WE GET PAID FIRST!

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1) "Capital Disqualification Event: If a Capital Disqualification Event occurs and is continuing, the
Preferred Securities will be redeemed in whole, but not in part, by
the General Partner at any time, each to be redeemed at the Optional
Redemption Price.
Any redemption of the Preferred Securities is subject to the consent
of the relevant Supervisory Authority (if required at such time)."


"A “Capital Disqualification Event” shall occur if:
(a) the Preferred Securities do not qualify as regulatory capital pursuant to the Relevant Rules upon either
LBHI or the Guarantor becoming subject to supervision by a relevant Supervisory Authority; or
(b) if following any such person becoming subject to the Relevant Rules a change of such Relevant Rules
results in the Preferred Securities no longer so qualifying;"

2) "5.1 If a Trigger Event occurs, then, provided that (if required at such time) no relevant Supervisory
Authority has objected, the General Partner shall take all reasonable steps to cause the substitution of
the Preferred Securities by depositary shares representing Substituted Preferred Stock (the “Preferred
Securities Substitution”) on the Substitution Date, as defined below."
.
.
.
No Preferred Securities Substitution will take place and the Holders will continue to hold their
Preferred Securities and all their rights thereunder if prior to the Substitution Date, a winding-up of LBHI occurs."



"“Trigger Event” shall occur (i) if LBHI is placed into bankruptcy, reorganisation, conservatorship or
receivership, (ii) if following any time when LBHI becomes subject to Relevant Rules, LBHI has capital
adequacy levels which are less than the minimum capital adequacy levels which are imposed by the relevant
Supervisory Authority or (iii) if, following any time when LBHI become subject to Relevant Rules, the
relevant Supervisory Authority, in its sole discretion, informs LBHI that it will not meet its minimum capital
requirement in the near term;
“UK Holding” means Lehman Brothers"

3) "The Guarantee will not cover payments on liquidation of the Issuer. See “Rights upon Liquidation” below."

"Rights upon Liquidation: In the event of the dissolution of the Issuer, Holders will be entitled
to receive, subject as set out below, for each Preferred Security a
Liquidation Distribution out of the assets of the Issuer legally
available for distribution."



https://www.bancobest.pt/ptg/bestsite/best_docs/lehman_xs0215349357.pdf