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Re: SwissCheeseAccount post# 110035

Wednesday, 02/14/2024 4:21:43 PM

Wednesday, February 14, 2024 4:21:43 PM

Post# of 111126
I am now having the thought that, even if LBHI discharges its debt and does not have to pay CTs (everyone’s biggest fear right?) that the capital trust can still cause the transfer of the subordinate debentures to the holders of the preferred securities right? “But then we will hold debt that LBHI does not have to pay! We would be holding zombie debt” well because of the ECAPS 4-5 prospectus which state ECAPS are supposed to receive preferred stock, AND since we know Lehman wants to issue the ECAPS the preferred stock, and because ECAPS 4-5 are in parity with the CT’s and are in class 10A, the subordinate Debentures we will receive as per the CT prospectus would then be given back to Lehman in exchange for the preferred stock we would receive due to the parity clause of ECAPS 4-5. The debentures are an asset and us exchanging them would be an asset contribution to Lehman. Please note that the discharge extinguishes Lehman’s obligation to pay a debt, it does not extinguish a debt nor extinguish a prospectus.

A debt for equity swap