Lehman Preferred Series "J" Preferred (fka LEHJQ)

[pinda]

Why the Panic????

It was ALWAYS dependant on the balance sheet. MM's and buyers are estatic that some of you are jumping off the bridge right now. The same reason you got into this stock (Assets > Liabilities) is the same reason you should be holding right now.

Read what the original agreement said:

4.9 LBHI Class 9 – Equity Interests in LBHI.
(a) Impairment and Voting. LBHI Class 9 is impaired by the Plan. Each holder of an Equity Interest in LBHI Class 9 is not entitled to vote to accept or reject the Plan and is conclusively deemed to have rejected the Plan.
(b) Distributions. On the Effective Date, all Equity Interests in LBHI shall be cancelled and one new share of LBHI’s common stock
shall be issued to the Plan Administrator which will hold such share for the benefit of the holders of such former Equity Interests consistent with their former economic entitlements; provided, however, that the Plan Administrator may not exercise any voting rights appurtenant thereto in conflict with Article VII of the Plan. Each holder of an Equity Interest in LBHI shall neither receive nor retain any property or interest in property on account of such Equity Interests; provided, however, that in the event that all Allowed Claims in LBHI Classes 1 through 8 have been satisfied in full in accordance with the Bankruptcy Code and the Plan, each holder of an Equity Interest in LBHI may receive its Pro Rata Equity Share of any remaining assets of LBHI consistent with such holder’s rights of priority of payment existing immediately prior to the Commencement Date.

The bold part is very clear. If Assets > Liabilities and all the people are paid out, then you will get yours in the same priority that you would have got paid prior to the commencement of LAMCO. Hence J's being paid out before commons. The reason you should bail is if you think assets < liabilities. Don't get spooked by the one share talk. They clearly state it will get divided up accordingly if they have the assets......so my question is what has changed?