It seems Lehman actually owns more than 31.1 billion against itself.
In docket #61102 page 12 foot notes they state that LBHI is the holder of Allowed Claims against itself of approximately $31.1 billion, including:
- $1.2billionof Class 3 Claims – Senior Unsecured
- $25.3 billion of Class 4A Claims – Senior Affiliate Claims
- $0.6 billion of Class 4B Claims – Senior Affiliate Guarantee
- $0.2 billion of Class 5 Claims – Senior Third-Party Guarantee
- $0.6 billion of Class 7 Claims – General Unsecured
- $1.2 billion of Class 9A Claims – Third Party Guarantee Claims other than of the RACERS Trusts
- $1.9 billion of Class 9B Claims – Third Party Guarantee Claims of the RACERS Trusts
In docket # 61101 page 17 in ECAPs section they state:
Lehman Brothers Holdings PLC (“PLC”) has outstanding approximately €0.8 billion of subordinated notes issued to ECAPS I-III and approximately $1.9 billion of subordinated debt which is held by LBHI. LBHI2 has outstanding approximately $3.186 billion of subordinated debt issued to PLC and approximately $6.139 billion of subordinated notes which is held by Lehman Brothers Holdings Scottish LP 3 (“SLP3”).
€0.8 billion = $0.95 billion. So Lehman holds total 12.175 billion of ECAPSs against itself. Assuming there is no double counting then grand total 31.1+12.175 = 43.275 billion owns Lehman against itself.
ECAPs are probably not included in the 31.1 billion because ECAPs are class 10A and Lehman states in docket #61102 page 12 foot notes they do not own 10A claims against itself. Could it be reporting error? OK, most of it is owned via subsidiaries and probably they do not have to show that they own it but there is this 1,9 billion owned directly by LBHI and that should be reported correctly. Would love to hear opinions about this. Correct me if I’m reading or interpreting it wrongly.
Also (now speculating), probably the 43.275 billion is not the final number. Something tells me they have bought back via various schemes and various subsidiaries much more of their own debt. Million dollar question is how much they have bought back class 10B debt.
Cheers
Slim
