Lehman Brothers Financial SA (LEHNQ)

[SwissCheeseAccount]

📝

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169516719&txt2find=Contract

take all reasonable steps to cause the substitution of the Preferred Securities with depositary shares representing fully paid non-cumulative preferred stock issued directly by Lehman Brothers Holdings Inc. (“LBHI”).

https://casetext.com/case/in-re-lehman-bros-holdings-inc-19

Substituted Preferred Stock" is defined under the ECAPS Terms as "fully-paid non-cumulative preferred stock issued directly by LBHI bearing a right to dividends calculated in the same manner as the [ECAPS], having no voting rights (except as required by law) and being subject to optional redemption in the same manner as the [ECAPS]." A "Trigger Event," as defined under the ECAPS Terms, occurs "if LBHI is placed into bankruptcy, reorganisation, conservatorship or receivership" or fails to meet certain capital-adequacy requirements.

Pursuant to its corporate charter in effect prior to the Petition Date (as defined below) (the "Pre-Effective Date Charter"), LBHI was authorized to issue 24,999,000 shares of preferred stock, of which over 17,000,000 shares remained available to be issued as of the Effective Date (as defined below)

The depository shares:

https://www.sec.gov/Archives/edgar/data/806085/000104746908000953/a2182499z424b2.htm

LEHMAN BROTHERS HOLDINGS INC.

DEPOSITARY SHARES
EACH REPRESENTING 1/100TH OF A SHARE OF
7.95% NON-CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES J

As of the date of this prospectus supplement, our authorized capital stock includes 24,999,000 shares of preferred stock.

https://www.sec.gov/Archives/edgar/data/806085/000104746905000357/a2149684z424b2.htm

Status of the Guarantees

The guarantee will constitute an unsecured obligation of Lehman Brothers Holdings and will rank:

•
subordinate and junior in right of payment to all other liabilities of Lehman Brothers Holdings,

•
on a parity with the most senior preferred or preference stock now or hereafter issued by Lehman Brothers Holdings and with any guarantee now or hereafter entered into by Lehman Brothers Holdings in respect of any preferred securities of any affiliate of Lehman Brothers Holdings, and
.

Parity with the Most Senior Preferred or Preference Stock meaning: The guarantee is on equal footing (parity) with the most senior preferred stock or preference shares issued by Lehman Brothers Holdings. This means that in terms of payment priority, it is neither superior nor inferior to these types of stock.

Parity with Any Guarantee for Preferred Securities of Affiliates meaning: It's also on the same level as any other guarantees Lehman Brothers Holdings might provide for preferred securities (a type of investment) issued by its affiliates

Proof ECAPS IV-V are class 10A:

Commencing on September 15, 2008 and periodically thereafter, LBHI and certain of its subsidiaries commenced the above-captioned chapter 11 cases. In those cases, two of the Partnerships were creditors of LBHI. Specifically, LPs IV and V held Subordinated Notes claims against LBHI that were addressed in LBHI’s Plan. See Plan § 4.13 (treatment of Subordinated Class 10A Claims against LBHI). Moreover, LBHI was a party to each of the Partnership Agreements, and thus each Partnership had a vested interest in the treatment of those Partnership Agreements during LBHI’s
chapter 11 cases. See LP III Partnership Agreement at 2.

The most senior preferred are ECAPS IV-V which were issued by LBHI and are within class 10A. CT’s are not the most Senior because we rank in class 10B. Meaning CT’s claim to fame is the same as the ECAPS which is non cumulative preferred stock.