Lehman Brothers Financial SA (LEHNQ)

[linda1]

There are different forms of consolidation and what Mr. Marshal has said is that what he thinks is best is to not substantively consolidate the entities - he did not rule out consolidation of assets and liabilities.



I don't think what Mr. Marsal wants necessarily means a lot. He has already filed a Plan that has not been accepted.



I really think that Mr. Marshal is just hoping there will be compromises among creditors to avoid substantive consolidation - however in my reality of studying the figures I cannot think of any compromise as yet that would net the creditors of domestic subsidiaries a better recovery than substantive consolidation.



Quite frankly I am a little suspicious of Mr. Marsal's resolve to avoid substantive consolidation - and if the majority of unsecured creditors want this then I would not be surprised if a Plan of Reorganization based on Substantive Consolidation was filed by this group of creditors.



The Official Creditors' Committee has already stated that substantive consolidation will be important in any Plan that is executed - and since the Committee represents the unsecured creditors its opinion will be asked of by Judge Peck.



I don't think the issue of substantive consolidation is over yet just because Mr. Marsal wishes it to be.