The reason Ct'S had to keep trading is because CT's are not equity in Lehman they are equity in the trust. the equity shares within the trust are what make the claim against the estate.
In a company structure preferred's still hold a right to be paid before common shares.
The bankruptcy classes are just classes for who gets a piece of the assets first under the plan.
Lets say all classes 3-11 are satisfied in full. Preferred shares that are in class 12 are entitled to a payout BEFORE common shares. whatever money is left, preferreds would get paid first before the common shareholders due to the basic company structure rulings.
This is why LBHI is trying to put ECAPS in class 12 imo. Because they would be entitled above all other securities in class 12 for a payout FIRST. since they are a preferred.
LBHI is trying to offer ECAPS J shares because ECAPS only right to any payment would be through paying with stock. Class 12 will classify them as equity interest. J shares are equity. (equity interest)
I dont think it matters what class is what when it comes down to classes that were deemed to reject the plan. I think it only matters for the off chance there is a cash distribution available. other than that it is irrelevant imo.
This is why i believe j shares will be used to satisfy classes 10a-equity which is only half of the $ amount of J shares that haven't been issued.
The equity shares within the trust were placed within class 12(OBS). (back in 2012) The claim the trust has that holds the CT's were still class 10B.
Trading resumed because we are not trading shares within LBHI, we are trading shares within a trust.
This is why I said Lehman can give J shares to the trust and the trust can swap those out CT's. CT's don't have a convertible equity clause of equity within the Lehman ENTITY . not the trust itself. This is why they had to continue trading imo.
CT's are preferred stock within a trust. the trust has a debt claim against the LBHI estate. If that debt claim is paid, then we get paid. I don't see anything in the CT's prospectus forbidding preferred shares within the trust to be swapped with new preferred shares.
The error from 2012 was that the CT's trust shares were being counted as 'Lehman' shares and since all Lehman equity shares were cancelled they delisted the CT's since the claim against the estate was through the trust. If we ourselves were the true debt holders, then everytime a CT would trade it would be posted on the epiq website.
But I don't think there was an error. This is why Lehman is trying to get the ECAPS in class 12 equity interest. Just because we are class 10B it kind of doesn't matter since we are the most senior preferred and
I think Lehman themselves are looking at us as 'class 12' Even though the plan says we are 10B imo. since classes 10A-12(equities) were deemed to reject the plan anyways, they will satisfy all the same way which is through j shares I'm thinking.
There is also the thought they they can sell j shares to the public and with the money raised through the j share sale, CT's could be paid in full through that.
Total $ amount owed through classes 10A-equity preferred's including ECAPS = $25,524,240,00, (no commons were calculated since commons have no Face Value) = $25,524,240,000
according to articles, there are 17,000,000 j shares @ $2500 each that were not issued. 17million x 2500 = $42,500,000,000
J shares ($42billion) - classes 10A-equity preferred's (including all ecaps)= $16,975,760,000 J shares left for issue.
remember j shares are non voting stock and have 0 ownership of the company.
This all goes back to the LBHI deutsche bank ECAPS thing. the class 12 cancellation years ago, LBHI trying to put ECAPS in class 12 now. there has definitely always been a plan for the j shares imo.
all imo
Do your own DD
