This is an excerpt from LBHI Docket# 6699 page 4 of the DEBTORS’ MOTION PURSUANT TO
SECTIONS 105(a) AND 362 OF THE BANKRUPTCY
CODE FOR APPROVAL OF CERTAIN RESTRICTIONS AND
PROCEDURES APPLICABLE TO TRANSFERS OF THE DEBTORS’ SECURITIES...
The Stock Trading Order is intended to prevent an ownership change prior
to a chapter 11 plan, thereby preserving the use of Lehman’s Tax Attributes during the pendency
of the Debtors’ bankruptcy cases. This Motion seeks to preserve the Debtors’ ability to
maximize the potential value of the Tax Attributes in connection with the implementation of any
chapter 11 plan involving all or part of the Debtors’ current assets.
It is now possible that one or
more of the Debtors’ chapter 11 plans will involve the issuance of new common stock in one or
more of the Debtors (or their successors) and the distribution of such stock to certain creditors in
satisfaction, in whole or in part, of their Securities. This issuance and distribution likely would
result in an “ownership change” under section 382. In such event, the Debtors may be entitled to
the special relief afforded by section 382(l)(5) of the Tax Code for ownership changes pursuant
to a confirmed chapter 11 plan or applicable court order. Such relief, however, may not be
available if the trading and accumulation of Securities prior to the effective date of a chapter 11
plan is left unmonitored and unrestricted.
Coach T
