Lehman Brothers Financial SA (LEHNQ)

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They can organize a class as subordinated if they want and if it is the proper class. But they made a mistake with the CTs. They should have organized the CTs to under a guarantee class. But, they did not. That is the error waske is arguing. The CTs need to be reclass ed.

With the parity argument and NB being redeemed and NB is an affiliate, one can argue that the CTs should have been redeemed or get the same dollar amount the NB shareholders got. Both waske and Wu claim NB is not the only affiliate that redeemed their preferred shares.