Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

The Lehman bankruptcy is a chapter 11 liquidation. It was well known that liabilities greatly exceeded assets and that the traditional preferreds and common shareholders would receive nothing. The OBS was created so ownership could not change to retain the NOLs to be used for the benefit of maximizing asset sales for the benefit of the creditors. Retaining the 51% ownership is not based solely on one buyer or seller getting more than 51% ownership. If 51% of the shares change hands the cumulative effects of a multitude of small holders could accomplish that. The judge had the legal right to make that happen to maximize the value of the liquidation.
If by any miracle all debtors were paid you still would have received your share of proceeds from the liquidation.