When I first read the Reuters article I thought the same way as everybody else here.
Docked says that Archstone was publicly traded before the takeover. Every company must have common share(s), thats not a question. I don't know if Archstone has preferred shares. Only reasonable conclusion is that there are existing Archtones preferreds otherwise there would be no need to state that in the docket.
If that 5,2 bln is on LBHIs balance sheet (like article says: Lehman wants to swap $5.2 billion of loans used to fund the buyout ") then it's someones elses money and that someone else must have filed a claim. Lets zoom out: why would A&M only convert that 5,2 bln into preferred shares. Rest of the claims should be also converted? It does not make sense?
And, getting rid of 150 million annual interest payment, that would help LBHIs balance sheet not Archstones.
Please note that English is my second language and I may be reading this all thing wrong.
