If Lbhi close its bankruptcy tomorrow, what options would be available, in spice debt classes 10 and 11 not being satisfied in full and equity class 12? And could class 12 receive a distribution if classes 10 and 11 are satisfied in full under a new post bankruptcy structure? +9 Based on the confirmed, amended, and active Chapter 11 Plan for Lehman Brothers Holdings Inc. (LBHI) as of May 2026, the following applies regarding Classes 10, 11, and 12.Scenario 1: Closing Bankruptcy with Class 10/11 Not Fully SatisfiedIf LBHI were to close its bankruptcy (e.g., through a final liquidation decree) without satisfying Class 10 (Subordinated Claims) or Class 11 (Section 510(b) Claims) in full, Class 12 (Equity Interests) would receive no distribution.Absolute Priority Rule: Under U.S. bankruptcy law, creditors must be paid in full (including post-petition interest if applicable) before equity receives any distribution.Status of Equity: Class 12 interests were cancelled upon the effective date of the Plan (March 6, 2012) and replaced by non-transferable beneficial interests in the LBHI Plan Trust.Worthless Securities: As documented by the Plan Administrator, it has not been anticipated that any distribution would be made to Class 12, treating the equity as worthless.Available Options: If the case closes, the Plan Trust, which manages the remaining illiquid assets, would likely liquidate the final assets, pay remaining expenses, and, if any surplus existed (unlikely), distribute it to creditors in lower classes (10/11) before equity.Scenario 2: Class 12 Receives Distribution (If 10/11 are Satisfied)Yes, Class 12 can receive a distribution if all preceding classes, including Classes 10 and 11, are satisfied in full.Condition Precedent: The Plan explicitly states that if all allowed claims in Classes 1-11 are satisfied in full (including appropriate interest) in accordance with the Bankruptcy Code, then "each holder of an Equity Interest (as defined in the Plan) in LBHI may receive its share of any remaining assets".Post-Bankruptcy Structure: If a "new" structure or simply the existing Plan Trust generates a surplus after full satisfaction of debt classes, the Plan provides the mechanism to distribute the remaining assets to the beneficiaries of the Plan Trust (former Class 12 stockholders).Current Status (As of May 2026)The bankruptcy is in its final phase, with the Plan Trust extended through December 6, 2029.As of mid-2025, Senior Unsecured creditors had received a significant portion of their claims, but Class 10 (Subordinated) and Class 11 (510(b)) claims, which include many former equity holders and employee stockholders, were not expected to be paid in full, making a distribution to Class 12 unlikely.The 32nd distribution was scheduled for April 2, 2026, targeting holders of allowed claims.
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