Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

It is all about allowed claim class and contract law my friend. Study my previous ten posts.

What does a contract mean to you? The POR is a contract! Oh well, forget about the POR contract and I will give you an allowed claim that is reallocated to higher classes. Sir, we can forget about the POR contract? Yes Well put me in class 3. What? no way, lets use the CTs' subordinated guarantee parity clause and put you in class 4B.

Read my last twenty posts. If you do not want to go by an official contract, put me in a better position than my contract would allow me to be in according to the contract language and we will call it a settlement agreement. Do not conceal how you treated my claims for eleven years and expect me not to enforce my parity rights that put me in the money:

a) LBHI's 2005 written consent (ECAPS)

b) LBHI’s August and September 2008 guaranties and security agreements
in favor of JPMCB’s subsidiaries and affiliates

c) LBIE's class A preference shares

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"The guarantee will constitute a guarantee of payment and not of collection (that is, the guaranteed party may institute a legal proceeding directly against Lehman Brothers Holdings to enforce its rights under the guarantee without first instituting a legal proceeding against any other person or entity)."

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1) What is the CTs' Subordinated Guarantee? Read the parity clause below! This is big medicine boss!

Excerpt from CTs' relevant prospectus:

"Status of the Guarantees
The guarantee will constitute an unsecured obligation of Lehman Brothers Holdings and will rank:
•
subordinate and junior in right of payment to all other liabilities of Lehman Brothers Holdings,
•
on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings, and
•
senior to Lehman Brothers Holding's common stock.
The guarantee will not place a limitation on the amount of additional senior debt that may be incurred by Lehman Brothers Holdings.
A | 72
The guarantee will constitute a guarantee of payment and not of collection (that is, the guaranteed party may institute a legal proceeding directly against Lehman Brothers Holdings to enforce its rights under the guarantee without first instituting a legal proceeding against any other person or entity). The guarantee will not be discharged except by payment of the guarantee payments in full to the extent not
21
paid by the trust or upon distribution of the junior subordinated debt securities to the holders of the preferred securities in exchange for all such preferred securities.
The guarantee, when taken together with Lehman Brothers Holdings' obligations under the junior subordinated debt securities, the indenture and the declaration, including its obligations to pay costs, expenses, debts and liabilities of the trust, other than those relating to trust securities, will provide a full and unconditional guarantee on a subordinated basis by Lehman Brothers Holdings of payments due on the preferred securities. See "Effect of Obligations Under the Junior Subordinated Debt Securities and the Guarantee." "

https://www.sec.gov/Archives/edgar/data/806085/000104746905000357/a2149684z424b2.htm