Lehman Brothers Financial SA (LEHNQ)

[stockmojo9]

cotton,

Classes 7, 8, 9 all contain the clause, ". . . Claims against LBHI asserted by an Affiliate that are not entitled to a priority in right to payment over subordinated debt Claims against LBHI."

Classes 7, 8, 9 have been distributed +/- 42.5%, 33.5%, 26.8% of their claims.

Is anyone asking why Capital Trust subordinated debt payments are being re-allocated to pay Claim Classes with a lower right to payment?

Generally, in order for the subordinated notes to be paid, Claim Classes 3, 4A, 4B & 5 must be paid in full.

So, why have subordinated Capital Trust coupons (totaling $865M after 11 years from the CTs & $7.45B from all subordinated debt) been re-allocated to Classes other than 3, 4A, 4B & 5?

How is it that subordinated debt payments are re-allocated to Claim Classes with a lower right to repayment during the Deferment period or after?

What is your answer for that, cotton?

How is that not fraud & looting?

mojo