Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

I think this is in context to the ECAPs, right?

No, Lehman can not issue new shares. New shares would indicate capital has been received in return.

But, there is a conflict here as I see it. Keep in mind I don't follow the ECAPs or where they currently stand. My research of the ECAPs is very limited.

From my understanding the ECAPs had a right to be issued preferred shares in exchange from LBHI if LBIE failed. I assume the thinking here is that the bigger LBHI would be more stable financially. Both failed.

So here is the conflict. Lehman cannot issue news shares as they are not raising capital. But they owe the ECAPs preferred shares. So, does the court let them issue shares as a technicality that then the ECAPs present to the court to file a claim and to be awarded a claim? (I think I saw you posted a 10A claim) Or, does the court allow the trustee to simply award a Class 10A(?) claim??

I do not know. You are trying to pin me down on something I really have no interest in to research how it all panned out.

From my understanding, originally I think Lehman tried to force the ECAPs accept the exchange of shares so the ECAPs could not collect from the LBIE estate, which would leave more residual for LBHI. The ECAPs won and was allowed to collect from LBIE. And, also got a claim in the LBHI case.

So, no Lehman can not issue more shares. But, the ECAPs situation as to new shares the courts had to iron out.
I am pretty sure I have explained or touch on this in the past.
I answered your question. I am not going to debate as I have no interest in this subject, and admittedly limited knowledge and recollection of something I looked in to briefly probably 3-5 years ago.