Lehman Brothers Financial SA (LEHNQ)

[SwissCheeseAccount]

Interesting.🤔


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

Pursuant to the terms of the Amended Charter and the Amended By-Laws, LBHI is prohibited from issuing any non-voting capital stock except the one share of common stock to be held by the Plan Trust.
Specifically, the fourth provision of the Amended Charter provides that "[LBHI] shall not be authorized to issue any non-voting capital stock of any class, series or other designation to the extent prohibited by section 1123(a) (6) of the Bankruptcy Code....
138 See Amended Charter at 2.
Additionally, the Amended By-Laws provide that "nless otherwise required by law, no capital stock of the Corporation shall be issuable or transferable to any person other than the Plan Trust (as defined in the Plan)." See Amended By-Laws, Article VI, $ 1.“

It seems a loophole is in play because section 1123 prohibits non voting capital stock, however it DOES NOT prohibit the issuance OR listing of notes (debt).