Lehman Brothers Financial SA (LEHNQ)

[marayatano]

"Notably, some courts consolidate entities while providing certain priorities to creditors otherwise prejudiced by the consolidation."

Let me see. Normal BK, Holding company creditors get what? 14.x% Subsidiary creditors get more than 14.x% Ok, no dispute there.

Now apply substantive consolidation: Lets see... holding company receives a better recovery from 14.x% as a result.

Now apply your theory of ALL creditors share in the pot. Subordinates get as much as higher and more senior claims, yet senior claims are not paid in full??? Hmm....

Let think about it. Sure does look like more senior claims are prejudiced by the consolidation.

I am trying to be realist and NOT with my money here.


imo