Lehman Brothers Financial SA (LEHNQ)

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Item 27 below leads me to think that the Debtors will match LBHI's Equity Plan Trust percentage recovery with LBHI's creditors recovery percentage (currently around 40%) prior to December 6, 2020. By law the Debtors cannot tell us that equity will have a recovery.

"Creditors’ recoveries will increase by the amount of the Partnerships’ net value. And the potential for recovery at all to equity holders will only increase."

*** From Docket 57036

"27. Issuance of the Substituted Preferred Stock furthers the Plan Administrator’s duty “to maximize Distributions to holders of Allowed Claims.” (Plan § 6.1(b)(iii).) No creditor or equity holder of LBHI is harmed in its capacity as such. Creditors’ recoveries will increase by the amount of the Partnerships’ net value. And the potential for recovery at all to equity holders will only increase. (Holders of LBHI Class 12 Equity Interests are nevertheless not expected to receive any Distributions on account of such interests.) Issuance of the Substituted Preferred Stock will not conflict with the purpose of any of the Effective Date amendments to LBHI’s certificate of incorporation: achieving strict compliance with certain requirements of the Bankruptcy Code and protecting the LBHI tax group’s tax attributes."

*** CTs in different ballgame vs ECAPS

1) JPMCB is holding the guarantee claim number for LBHI's Preferred Securities by way of "Unaffected Matters." This event (claim number) was a new style curve ball for the Debtors.

2)The BNYM is holding the allowed claim numbers for LBHI's Preferred Securites Trust assets: Subordinated Notes. The Debtors did not predict or foresee the JPMCB guarantee claim number above in item 1.