Lehman Brothers Financial SA (LEHNQ)

[SwissCheeseAccount]

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https://www.goodwinlaw.com/~/media/Files/Publications/Newsletters/Client%20Alert/2009/Portfolio_Company_Debt_A_New_Investment_Focus.ashx

Some investors in the current market are taking a page out of the playbook used by
Leon Black and Steve Feinberg, founders of Apollo Management and Cerberus
Capital Management, respectively, by purchasing distressed debt in a so-called
“loan-to-own” strategy. Specifically, sponsors such as Goldman, Blackstone,
Carlyle and others have recently raised substantial funds to take advantage of these
opportunities and compete with the established players such as Apollo, Cerberus,
Oaktree Capital and others. While this is not a new business model, its
consideration by more traditional private equity firms is a potentially significant
development in response to unprecedented economic conditions.
Essentially, a loan-to-own strategy involves purchasing outstanding debt of a
company at a discount (usually pursuant to a standard LSTA (Loan Syndication and
Trading Association) Purchase and Sale Agreement for Distressed Debt) and then
Goodwin Procter LLP Page 2
negotiating with the issuer to restructure and convert the debt to equity. This can be
done consensually, through foreclosure or litigation, or through a bankruptcy

DEBT/EQUITY
DEBT/EQUITY

COME ON FOLKS!!! LOOK AT WHATS HAPPENING!!!!

SOME SAY OWNERS ARE EQUITY HOLDERS! THEY WILL ISSUE NEW SHARES TOO CREDITORS AND CANCEL OUT ALL OLD ONES!!! THUS MAKING CREDITORS THE SHARE HOLDERS

ONCE AGAIN READ AND ADD, 1+1 =2!!!

https://www.reuters.com/article/us-lehmanbrothers-decision-idUSKCN0WX2BF

“When Lehman filed its bankruptcy petition, it listed 20,000 former employees and told them they had contract claims,” Schager said. “It wasn’t until the big creditors took over Lehman’s shell that the squeeze of employees began, including the recharacterization of contract claims as securities claims.”

want to know what a shell means?? here watch this on your free time please! I believe hulu or netflix has it for free, if not It's worth the $2.99 rent!

BIG CREDITORS TAKING OVER SHELL. CLAIMS BEING SOLD TO BIG SPONSORS GRANTING MAJORITY OWNERSHIP, MAJORITY OWNERSHIP IS NEEDED TOO APPROVE DEBT FOR EQUITY! WHO IS BUYING CLAIMS WHEN IT IS SAID ON BALANCE SHEET LEHMAN CAN'T PAY THEM BACK?!?!

DEBT FOR EQUITY

I WILL BET ANYBODY ON THIS BOARD