Lehman Brothers Financial SA (LEHNQ): Dot connecting? to an entity designated...

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SwissCheeseAccount

Re: SwissCheeseAccount post# 102790

Saturday, 02/10/2024 7:18:48 PM

Saturday, February 10, 2024 7:18:48 PM

Dot connecting?

to an entity designated by the LBT Trustees to be incorporated under Dutch law (the "Entity"). The Entity shall not own any interest, directly or indirectly, in any Debtor or Lehman Tax Affiliate (other than LBT), nor shall any Debtor or Lehman Tax Affiliate be a direct or indirect beneficiary or owner of the Entity. The LBT Trustees shall cause the Entity to be formed prior to
the date of the transfer of the LBT shares“

“Incorporated under Dutch law. This may imply it would be overseas from the United States. As per the ECAPS prospectus:

Although LBHI has undertaken that, in the event that the Preferred Securities are substituted by depositary shares representing Substituted Preferred Stock, LBHI will apply for a listing for the Substituted Preferred Stock outside of the United States,

We also know all current claims being traded for the last couple of years are ONLY LBT claim. Lets move on to the next

The Entity shall not own any interest, directly or indirectly, in any Debtor or Lehman Tax Affiliate (other than LBT), nor shall any Debtor or Lehman Tax Affiliate be a direct or indirect beneficiary or owner of the Entity.

This means that when LBHI transfers the shares to LBT, LBT will not own ANY ownership stake in LBHI or any other debtor except itself (LBT). since most of the claims left being traded are LBT claims, this may be a great thing.

The LBT Trustees shall cause the Entity to be formed prior to
the date of the transfer of the LBT shares“

this means this company to be formed under Dutch law will be a new entity. This also means the remaining debt that LBT holds against LBHI will be exchanged for the shares that LBHI transfers to LBT which will reduce the debt owed by LBHI.

As per the LBHI plan section 15.2:

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.

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,

Keyword(s) “new entities” which is also stated in the LBT transfer of shares.

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 contributed assets will be debt! In return they will give you new securities AKA equity
DEBT FOR EQUITY SWAP

Oh and for mellowbird, the transfer of shares to LBT document doesn’t include the “may” language ;)