Lehman Preferred Series "J" Preferred (fka LEHJQ)

[toogoodfella]

Even my projection to the preferreds is TooGood..I've been mentioning repeatedly the recovery from the -41B investments in affiliates, and as of now, in June A/L, it is from -50B. It is even mentioned in the MOR that the reserve for this -50B is still undetermined. But if you will look at the Ad Hoc program pg2-15, there is 45B intercompany receivable that is exposed for the first time.

The result from this (if all received) will be a cancelled 45B intercompany claim and canceled negative -45B in the A/L.

Result will be: 244 + 45 = 285B asset.
Claim will be: 322-45 = 277B.

A 39B recovery will be enough to balance the June A/L.
Asset: 244B+39B=283B
Claim: 322B-39B=283B

The Ad Hoc program assumed that all the 45B is recovered.