>>Response: The Trust Preferred Securities were issued by the non-Debtor entities identified above (the “Trusts”). Based on relevant prospectuses, the sole assets of the Trusts were certain subordinated debt securities (the “Subordinated Securities”) issued by Lehman Brothers Holdings Inc. (“LBHI”). Under the Plan, claims against LBHI on account of the Subordinated Securities have been classified in LBHI Class 10B. Based on the 2013+ Cash Flow Estimates filed on July 23, 2013 [ECF No. 38954], it is unlikely that the Trusts will receive any Distributions from LBHI on account of their class 10B claims. LBHI is not aware of any other assets currently owned or expected to be realized by the Trusts.<<
Not to beat a dead horse...for those here that do not understand the bankruptcy process.
When LBHI filed BK all attempts by debtholders are put on hold. They are 'stayed' from taking judiciary action. The trust then files a claim against the estate, and presents the securities as proof of claim. Once the BK court approves the claim and exits (emerges)from BK the actual subordinated securities and the terms of same become null and void. There is no longer a guarantee. The guarantee has not been discharged, but Lehman is relieved from obligation to perform on it deeming the guarantee worthless. The trust now holds a claim against the estate, and not a debt security. The claim can be sold and tranferred. That is why the CTs still trade. Technically, if you buy CT shares here you are buying a claim against the estate. As Lehman states above, distributions are received on account of your class 10b claim, not on account of the subordinated security.
