Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

Let me explain 15.2 to you which falls under Article 15 - Miscellaneous Provisions.
Here the Modified Plan says (in a nut shell) that the plan administrator at his DISCRETION may allow transfer of assets to a new or existing entity to facilitate the liquidation of those assets. Shares of that entity will be distributed to those having "Allowed Claims or Equity Interests against a Debtor that contributed assets to the entity issuing New Securities." And the shares distributed will be counted as a distribution from the estate as valued.

No where is 15.2 does it say that the plan administrator can distribute un-issued treasury preferred shares to creditors. That would be something Lehman would have to do and not the trustee. And Lehman can only do that once all the creditors have been satisfied in full and the trustee returns remaining assets over to the estate. And in that regard, we know that there will be no assets to be returned to the estate. The plan administrator is only charged with liquidation the assets of the estate. They have no authority to issue Lehman common or preferred shares.

In addition, this provision was never used. And with the last quarterly report showing only $2million in real estate remaining, it will not be used in the future.
You have confused the plan administrator with Lehman.

15.2 Issuance of New Securities. In the discretion of the Plan Administrator, each
Debtor or Debtor Controlled-Entity (a) may form and transfer certain assets of the Debtors
and/or Debtor Controlled Entities to new (or utilize existing) entities, including, without
limitation, one or more separately managed partnerships, REITs or other investment vehicles, to
hold certain real estate or other assets of the Debtors and/or Debtor-Controlled Entities and, (b)
may, in connection therewith, issue New Securities for Distribution under the Plan. In the event
that the Plan Administrator determines to issue New Securities, each holder of Allowed Claims
or Equity Interests against a Debtor that contributed assets to the entity issuing New Securities
shall receive the relevant New Securities as Distributions in accordance with the Plan. The New
Securities shall be valued as of the date of the issuance and the holders of Allowed Claims or
Equity Interests receiving such New Securities shall be deemed satisfied to the extent of the
value of the New Securities.