Only reasonable conclusion is that there are existing Archtones preferreds otherwise there would be no need to state that in the docket.
I don't agree. Although it is possible that Archstone has preferred shares, another possibility is that the preferreds are Lehman's. In fact, that's the conclusion that at least a few have already had.
And, getting rid of 150 million annual interest payment, that would help LBHIs balance sheet not Archstones.
Yes, you are absolutely right. There is no downside for LBHI on this. Every little bit helps. This is small, but good news.
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?
Well, although I can't answer every question you asked, I can give a guess: It may be that LBHI is dealing with an individual claim. You already answered your own question -- namely, to get a claim off the books/cleared up and take out 150 million a year. More ominously, if LBHI keeps doing this at the prefs expense, then this is setting a very bad precedent.
