Lehman Brothers Financial SA (LEHNQ)

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After Lehman’s bankruptcy, its assets, including the shares of AVB, were managed by the Lehman Brothers Holdings Inc. Plan Trust or similar estate entities formed for creditor recoveries. As a result, these ownership stakes are technically held by the trust or estate, not directly reflected as assets on LBHI’s active balance sheet.

Investments between 20% and 50% ownership are generally accounted for using the equity method, not consolidated on the balance sheet as owned assets. Lehman’s AVB stake, as a significant but non-controlling interest (around 10-13%), typically appears as an investment, reflected in financial statements in ways that do not fully consolidate the underlying asset value directly on Lehman’s balance sheet. (Accounting for Investments and Variable Interest Entities (VIEs):

Lehman used various off-balance-sheet strategies (including Repo 105 transactions) to manage appearance of leverage and asset positions during its final years before bankruptcy. Post-bankruptcy, the estate’s accounting and reporting follow specific legal and financial frameworks, often resulting in asset holdings like AVB shares appearing under estate or trust financial reports rather than Lehman’s balance sheet.

The AVB shares held as part of the bankruptcy estate are typically managed by trustees who report the holdings separately from LBHI’s consolidated financials. These shares may not be recorded on LBHI’s balance sheet to avoid double counting and due to the legal separation of estate assets from ongoing operating balance sheets.

https://elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1002&context=journal-of-financial-crises&utm_source=perplexity