Lehman Brothers Financial SA (LEHNQ)

[SwissCheeseAccount]

2good,


https://www.investopedia.com/terms/d/debtequityswap.asp

Look at the key words and link them. As my mother would always say "if it looks like a duck, walks like a duck, and quacks like a duck, it's probably a duck"

Pay attention:

Debt/equity swaps involve the exchange of equity for debt in order to write off money owed to creditors.

Who here always uses the term "write off" ?


Debt/equity swaps can offer its debt holders equity because the business does not want to or cannot pay the face value of the bonds it has issued. To delay repayment, it offers stock instead.

Who here always says lehman can not pay its debts?


In other cases, businesses use debt/equity swaps as part of their bankruptcy restructuring.

Speaks for itself.

In many cases, Chapter 11 reorganization cancels the company's existing equity shares. It then reissues new shares to the debt holders, and the bondholders and creditors become the new shareholders in the company.

Keyword "many"


If a company decides to declare bankruptcy, it has a choice between Chapter 7 and Chapter 11. Under Chapter 7, all of the business' debts are eliminated, and the business no longer operates. Under Chapter 11, the business continues its operations while restructuring its finances. In many cases, Chapter 11 reorganization cancels the company's existing equity shares. It then reissues new shares to the debt holders, and the bondholders and creditors become the new shareholders in the company.

Yes this is in fact a chapter 11 liquidation (at the moment imo) remember the plan is always subject to change. The liquidation was put in effect to pay back creditors and resolve litigations imo. Also liquidations imply the company will be sold and shut down, and we wont see it again. That too I agree with. Lehman wont come back, but something else will imo.

It is very possible for FV.