Lehman Preferred Series "J" Preferred (fka LEHJQ)

[rlinterests]

What does Lehman want to do?
swap $5.2 billion of loans used to fund the buyout into preferred equity interests
What will be the result?
(The new) preferred equity interests, which would be senior to existing preferred and common equity
Obviously, it would be put over preferred and common equity

Loans are debt and already have priority and are senior to existing preferred and common equity interests.

Do you really expect debt holders/bond holders to convert their debt interests into Preferred equity interests that are equal to or less than the existing preferred and common equity interests?