Lehman Brothers Financial SA (LEHNQ)

[wamugold]

https://www.bloomberg.com/features/2022-lehman-brothers-collapse-plan-repay-after-bankruptcy/

A UK Court of Appeal judge ruled that the Ecaps bucket deserved to go higher up the waterfall. In the years after Lehman’s collapse, some Ecaps notes were considered so valueless that they were given away, according to trading certificates seen by Bloomberg. Now it’s possible that if things go well for holders—and that’s a big if—the notes could be paid in full. For the few who bought early and sat tight, a free scrap of paper might yield millions of dollars.

Even in the sometimes extremely lucrative business of buying bruised debts, the Ecaps trade is considered remarkable. Robert Southey, a broker who’s traded Lehman’s debts, estimates that some traders could have gotten 40 times their money back. “It’s super unusual that something that’s considered zero within the whole structure recovers anything,” he says. That’s bondspeak for “wow.”