Lehman Brothers Financial SA (LEHNQ)

[BREAKER098]

If you’ve got “the list,” we can check each entity against (a) whether it was a Debtor or a Debtor-Controlled Entity, (b) how it was treated in the plan/updates, and (c) whether any proceeds would ever clear the Class 10B subordination wall. But the existence of a “$500M SPV” by itself doesn’t imply LEHNQ recovery under the confirmed waterfall.

LEHNQ represents trust preferreds issued by a non-debtor trust whose sole asset was subordinated debentures of LBHI. Under Lehman’s confirmed plan, claims on LBHI’s subordinated debt sit in LBHI Classes 10A/10B/10C and were not expected to receive any distributions; any value that would have gone to those classes was reallocated up the stack to senior unsecureds. Multiple court and plan documents say exactly this.

As always…Go figure…