The legalese I was looking for is the following from the LEHNQ prospectus pg. 13, under "Certain Terms of Subordinated Debentures - Option to Defer Interest Payments":
"During any deferral period, neither Holdings or any of its subsidiaries will be permitted to:
• pay a dividend or make any other payment or distribution on Holdings' capital stock;
• redeem, purchase or make a liquidation payment on any of Holdings' capital stock;
• make an interest, principal or premium payment, or repay, repurchase or redeem, any of Holdings'(S-13) debt securities that rank equal with or junior to the subordinated debentures; or
• make any guarantee payment with respect to any guarantee by Holdings of debt securities of any of its subsidiaries, if the guarantee ranks equal to or junior to the subordinated debentures."
The junior, subordinated debentures assets of the CTs are an LBHI claim, likely a Subordinated Class 10A claim, Class 4B Senior Affiliate Guarantee or Class 5 Senior 3rd Party Guarantee Claim. One of either of them.
No distributions have been made to Class 10A but they don't identify guarantee claims.
Class 4B has received 35% & Class 5 has received 28% approximately but it isn't clear if the distributions are to any subordinated claims.
Does anyone know for a fact the Class of the subordinated debentures with guarantees claims class?
In terms of the UK subsidiary ECAPS or payments to non-debtor LBT note holders, it seems the LEHNQ prospectus restricts these payments ". . . if the guarantee ran equal to or junior to the subordinated debentures".
And, if they are non-guarantee claims, how can they be anything but junior to the subordinated debentures with guarantee?
Are we now looking at a special event? An "Investment Company"?
If the subordinated debentures are either Class 4B or 5, haven't they been paid distributions in some restricted funds account already?
