Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

Cotton, Nobody misconstrues the meaning of these filings better than you do. You can't pick and choose excerpts without context to get the full meaning. The first excerpt is for final distributions to creditors. The second for a qualified distribution to LBHI shareholders. I say "qualified" because you should have highlighted this statement included.

provided, however, that prior to making any distribution to Beneficiaries, the Plan Trust may retain such amounts, in each case to the extent not paid for by LBHI, (i) as are reasonably necessary to meet contingent liabilities and to maintain the value of the assets of the Plan Trust during liquidation

This document about the plan trust clearly points out that it is for the "one big stock" for the equity shareholders. The CTs are not.

WHEREAS, the Plan Trust is created on behalf of, and for the sole benefit of, the holders of record of LBHI Stock (including any permitted successor record holder thereof, the “Beneficiaries”);

WHEREAS, the Plan provides that on the Effective Date all LBHI Stock is to be canceled and LBHI shall issue the Plan Trust Stock (which shall replace the canceled LBHI Stock) to the Plan Trust, to be held for the benefit of the Beneficiaries consistent with their former relative priority and economic entitlements as holders of LBHI Stock and Sections 4.17(b) and (c) of the Plan; and

This document also points out that Lehman now operates as a liquidating trust. This is no reorganization.

WHEREAS, the Plan Trust is intended to qualify as a liquidating trust within the meaning of Treasury Regulation Section 301.7701-4(d);