Lehman Brothers Financial SA (LEHNQ)

[jimmyt99]

Here's just a little reminder of why you are in this play and will receive the full monty plus. From the NQ Prospectus:

Indenture Events of Default
The indenture provides that the following are events of default relating to the junior subordinated debt securities:
•failure to pay required interest on any debt security of such series for 30 days;
•failure to pay principal or premium, if any, on any debt security of such series when due;
•failure to make any required scheduled installment payment for 30 days on debt securities of such series;
•failure to perform for 90 days after notice any other covenant in the relevant indenture other than a covenant included in the relevant indenture solely for the benefit of a series of debt securities other than such series;
•certain events of bankruptcy or insolvency, whether voluntary or not; and
•certain dissolutions of the related trust.
If any indenture event of default shall occur and be continuing, the property trustee, as the holder of the junior subordinated debt securities, will have the right to declare the principal of and the interest on the junior subordinated debt securities and any other amounts payable under the indenture to be immediately due and payable. An indenture event of default also constitutes a trust enforcement event. The holders of preferred securities in limited circumstances have the right to direct the property trustee to exercise its rights as the holder of the junior subordinated debt securities. See "Description of the Preferred Securities—Trust Enforcement Events" and "—Voting Rights."
Despite the foregoing, if a trust enforcement event has occurred and is continuing and such event is attributable to the failure of Lehman Brothers Holdings to pay interest or principal on the junior subordinated debt securities when such interest or principal is payable, Lehman Brothers Holdings acknowledges that, in such event, a holder of preferred securities may sue for payment. Lehman Brothers Holdings may not amend the indenture to remove this right to bring a direct action without the prior written consent of all of the holders of preferred securities.
Agreement by Purchasers of Certain Tax Treatment
Each junior subordinated debenture will provide that, by acceptance of the junior subordinated debenture, or a beneficial interest therein, the holder of the junior subordinated debenture intends that such subordinated debenture constitutes debt and agrees to treat it as debt for United States federal, state and local tax purposes.
Concerning the Indenture Trustee
Lehman Brothers Holdings and certain of its subsidiaries maintain bank accounts, borrow money and have other customary commercial banking or investment banking relationships with the indenture trustee in the ordinary course of business.
Miscellaneous
The indenture provides that Lehman Brothers Holdings will pay all fees and expenses related to:
•the issuance and exchange of the trust securities and the junior subordinated debt securities;
•the organization, maintenance and dissolution of the trust (other than U.S. withholding taxes);
•the retention of the trustees; and
•the enforcement by the property trustee of the rights of the holders of the preferred securities.
20

https://www.sec.gov/Archives/edgar/data/806085/000104746905000357/a2149684z424b2.htm

All four of the CTs have similar wording. It's a contract - we get paid. The problem is that it is not coming fast enough for some. Tough shite - get a life.

I said over the years to look across the pond. That has to end first. As well as the WAMU play. That should be done by 3rd Q this year. Then Pappy can reemerge. Remember, it's all political.

The amount of money coming back is staggering in these two plays. Just be glad you are here and never mind the bollocks.

In the meantime, have a few Sinatras and relax. The buggers here are funny.

Roll Tide